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Doing business in Portugal places companies in a vibrant and increasingly innovation-oriented economy. The country draws strength from established sectors such as tourism, automobile manufacturing, textiles, renewable energy, technology, construction and food production, while actively encouraging investment in digital industries, start-ups, R&D activities and advanced manufacturing.
Portugal’s regulatory environment supports businesses through clear company formation procedures, defined corporate and VAT frameworks and accessible digital registers. Employment rules offer multiple contract types and straightforward eligibility pathways for residents and foreign workers alike, all underpinned by a structured personal tax and social security system that applies across various income categories.
Together, these factors make Portugal a compelling choice for organisations looking to expand in southwestern Europe. This infographic outlines the essential points to consider before entering the Portuguese market.
Our free eBook on international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 17 countries. Breeze through the specifics of doing business across different markets and compare key data that may be crucial for your ambitions of international expansion.
Most common industries:
Industries favoured by investment incentives:
Most common legal form of business: Limited Liability Company (LDA) and Joint-Stock Company (Sociedade Anónima – SA)
Required no. of shareholders: LDA – 1 shareholder; SA – 5 shareholders
Required no. of directors: LDA – 1 Director; SA – 1 Administrator for share capital until €200,000. Board with 3 Administrators if share capital above €200,000
Official company registers: www.eportugal.gov.pt/en/espaco-empresa/empresa-online
*LDA incorporation time is 2-3 weeks. There are shelf companies ready to incorporate in 1-2 days.
* 20% in mainland Portugal; 14% in the Autonomous Regions of Madeira and Azores. For the first €50,000 of taxable income: 16% in mainland Portugal; 11.2% in the Autonomous Regions of Madeira and Azores
Who are tax residents: companies that have their head office or effective management located in Portugal
Tax period: calendar year
Due date for CIT return: between March 1 and June 30 of the year following the calendar (tax) year
VAT registration for residents: when they carry out an economic activity or one single VAT taxable transaction.
VAT registration for non-residents: when they carry out VAT taxable transactions in Portugal.
Other applicable taxes:
In Portugal, there is no energy tax, real estate tax or wealth tax.
Who is entitled to work in Portugal:
Types of employment contract:
* Based on the tax base
Who are tax residents: Individuals who have a permanent home in the country or staying in the country for longer than 183 days within a period of 12 months
Tax period: calendar year
Due date for PIT return: June 30
Taxable incomes in Portugal: income from employment, business, professional work, capital, property, assets and pensions
Health insurance contributions are included in the social security contributions
Doing business in Portugal offers distinct advantages and comes with its own set of challenges. If you are planning to expand internationally or enter the Portuguese market, the process can be smooth and straightforward when supported by the right team. With the help of skilled professionals who understand the local environment, you can approach business setup or growth in Portugal with confidence. Our network of Portuguese specialists is ready to assist you in developing business strategies tailored to your specific needs.
We provide a full range of advisory and BPO services in Portugal designed to keep your tax, legal, and corporate obligations, as well as your accounting, reporting, payroll, and HR processes, accurate, efficient, and fully aligned with Portuguese laws and standards.
Market entry support | Tax advisory and compliance | Legal advisory | Accounting and reporting | Accounting portal | Payroll outsourcing | Payroll portal | Attendance portal | HR administration | Transaction advisory | Transfer pricing | Company registration | Corporate and secretarial services | ESG reporting | Online consulting | Fixed service packages
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
