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Starting a Business in Portugal

Portugal is increasingly startup-friendly. You can register as self-employed (trabalhador independente) in minutes, or form a company (Lda or SA) through Empresa na Hora. The process is relatively fast and affordable.

1

Decide on the business structure

Sole trader (Empresario em Nome Individual): simplest, personal liability. Lda (Limitada): limited liability company, minimum 1 EUR capital, most common for small businesses. SA (Sociedade Anonima): for larger businesses, minimum 50,000 EUR.

2

For self-employed (Recibos Verdes)

Open activity at Portal das Financas: Cidadaos > Atividade > Inicio de Atividade. Choose your CAE code (activity classification). No capital required. You issue Recibos Verdes (green receipts) for each invoice.

Portal: https://www.portaldasfinancas.gov.pt
3

For company formation (Empresa na Hora)

Visit any Empresa na Hora desk (at Conservatoria or Loja do Cidadao). Choose a pre-approved company name, define the articles of association, and register — all in one visit. Cost: ~360 EUR.

Portal: https://www.empresanahora.mj.pt
4

Register for Social Security

Self-employed: register at Seguranca Social within 12 months of first invoice. Companies: register as an employer before hiring.

Portal: https://app.seg-social.pt
5

Understand your tax obligations

Self-employed: quarterly IVA (if not exempt), quarterly Social Security declarations, annual IRS. Companies: IRC (corporate tax at 21%), monthly IVA, monthly employee contributions, TOC (certified accountant) required.

6

Get a certified accountant (for companies)

All Lda and SA companies must have a TOC (Tecnico Oficial de Contas). Cost: 100-500 EUR/month depending on complexity.

7

Open a business bank account

Required for companies. Self-employed can use personal accounts but a separate business account is recommended for clarity.

Watch out

  • Self-employed workers have a 12-month Social Security exemption from first invoice, but must still register
  • IVA exemption applies if annual turnover is under 14,500 EUR (2026 threshold — verify current year)
  • D2 visa holders must show business activity at renewal — keep records of invoices and contracts

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