Skip to content
Free Consultation

Portugal Business Formation

Register a Company in Portugal EU Company in a Day

Portugal lets you form a company the same day for €360, with capital from €1 — and corporate tax is falling each year to 17% by 2028. Here is what Americans need to know about set-up, tax and US reporting.

In short

Most small businesses use a sociedade por quotas (Lda) or a single-member Unipessoal Lda, with capital freely set from €1 per share; an SA needs €50,000. You can form one the same day at an Empresa na Hora desk (€360) or online through a lawyer (€220 with standard articles, €360 with custom articles). Founders need personal NIFs first — non-EU residents no longer need a fiscal representative for that, but do once tax activity starts. Corporate tax is 19% in 2026 (18% in 2027, 17% in 2028), 15% on the first €50,000 for SMEs and 12.5% for certified startups, plus up to 1.5% municipal surcharge. Dividends to US shareholders carry 15% under the treaty (5% for a US company with 25%+). VAT is 23%, with an exemption up to €15,000 turnover. Every company needs a certified accountant and must declare beneficial owners to the RCBE within 30 days. US owners usually file Form 5471; an Lda can elect to be disregarded, an SA cannot.

Portuguese company: key facts

Last verified 28 September 2026
Usual company typeLda or single-member Unipessoal Lda: capital from €1 per share; same-day Empresa na Hora (€360) or Empresa Online (€220 with standard articles)# Source: Decreto-Lei 33/2011 (Diário da República) · InvoiceXpress: Como criar uma empresa em Portugal em 2026
Tax number (NIF)Non-EU residents can get a NIF without a fiscal representative (one is needed once tax activity starts); since July 2025 a lawyer can request it online# Source: Ofício-Circulado 90054/2022 (Informador) · Observador: Imigrantes sem cartão de cidadão já podem pedir o NIF no Portal das Finanças
Corporate tax19% in 2026 (18% in 2027, 17% in 2028); 15% on the first €50,000 for SMEs, 12.5% for certified startups; plus up to 1.5% municipal surcharge# Source: CIRC art. 87 (Portal das Finanças) · PwC Tax Summaries: Portugal corporate income
Dividend withholding28% for non-resident individuals, 25% for companies; 15% under the US treaty (5% for a US company with 25%+ held 2 years)# Source: PwC Tax Summaries: Portugal withholding taxes
VAT23% mainland (13%, 6% reduced); 22% Madeira, 16% Azores; small-business exemption up to €15,000 turnover since 2025# Source: CIVA art. 18 (Portal das Finanças) · PwC Tax Summaries: Portugal other taxes · AT Ofício-Circulado 25062/2025
AccountantEvery Lda and SA must appoint a certified accountant (contabilista certificado)# Source: OCC: Registo Central do Beneficiário Efetivo
Beneficial ownersOwners of more than 25% declared to the RCBE within 30 days and confirmed each year; since November 2025 only people with a legitimate interest can see it# Source: OCC: Registo Central do Beneficiário Efetivo · Cuatrecasas: Amendments to the RCBE regime
Self-employed social security21.4% on 70% of service income, declared quarterly; exempt for the first 12 months# Source: Segurança Social: Folha informativa trabalhadores independentes
IFICI (successor to NHR)20% flat tax for 10 years on income from qualifying highly skilled jobs, research and startups, with most foreign income exempt — not pensions; you must not have lived in Portugal in the previous 5 years# Source: Incentivo fiscal a investigacao cientifica e inovacao: AT leaflet · Startup Portugal: Legal Bites #03 IFICI
US tax treatySigned 1994, in force since 1996; the saving clause keeps US taxation of citizens# Source: Portugal tax treaty documents: IRS
US anti-deferral taxGILTI became NCTI for tax years from 2026; Portugal's 15% SME rate is below the 18.9% high-tax threshold — get US advice# Source: Greenback: GILTI high-tax exception · CIRC art. 87 (Portal das Finanças)
US company reportingUS owners usually file Form 5471; an Lda can elect to be disregarded (then Form 8858), an SA cannot# Source: IRS: About Form 5471 · 26 CFR 301.7701-2 (Cornell LII) · IRS: About Form 8858

Download these facts (CSV)

Not American?

Canadians, Australians, Brits and other non-EU citizens: the same rules apply

Portuguese company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register a company exactly as described here. Only a few points differ:

  • Canada
  • Australia
  • New Zealand
  • United Kingdom
  • Japan
  • South Korea
  • + other visa-free countries
Living in PortugalA company does not give you residence — non-EU founders need a D2, Startup Visa or other visa.
Tax treatyThe US treaty cuts dividend withholding to 15% (5% for US companies with 25%+ held 2 years). Other countries' treaties set their own rates.
Home-country taxUS citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI).
Documents from abroadNeed an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table

At a Glance

Portuguese Company Formation in Numbers

€1Minimum capital per share in an Lda
€360Same-day Empresa na Hora (€220 online with standard articles)
19%Corporate tax 2026 (15% on first €50,000 for SMEs)
23%Standard VAT rate (mainland)

Why Portugal

Why Americans Register Companies in Portugal

Portugal combines low formation costs, falling corporate tax rates (19% in 2026 to 17% in 2028), a 12.5% rate for certified startups and IFICI for qualifying staff. Madeira and the Azores have lower rates still.

The trade-offs: a certified accountant is mandatory, state and municipal surcharges and autonomous taxes add up, and US owners face NCTI and Form 5471.

Business Structures

Which Entity Type Is Right for You?

Most Common

Private Limited Company

Sociedade por quotas (Lda)

Two or more partners; capital freely set (minimum €1 per share). Can elect its US tax classification.

Min. capital
€1 per share
Formation
Same day
Solo Founders

Single-Member Company

Unipessoal Lda

One owner, limited liability, same €1 minimum share.

Owners
1
Larger Businesses

Public Limited Company

Sociedade anónima (SA)

€50,000 minimum capital; up to 70% of cash contributions can be deferred for up to 5 years. Always a corporation for US tax.

Min. capital
€50,000
Sole Traders

Self-Employed

Trabalhador independente

Register activity with the tax office; social security 21.4% on 70% of service income, with the first 12 months exempt.

Liability
Unlimited

Corporate Tax

Portuguese Corporate Tax in 2026

ItemRate
General corporate tax (IRC)19% in 2026, 18% in 2027, 17% in 2028
SMEs, first €50,00015%
Certified startups, first €50,00012.5%
SMEs in inland territories, first €50,00012.5%
Madeira and Azores13% (SMEs 10.5% on first €50,000)
Municipal surcharge (derrama)Up to 1.5% of taxable profit
State surcharge3% / 5% / 9% on profit above €1.5M / €7.5M / €35M

Law 64/2025 and the IRC Code. Source: PwC Tax Summaries: Portugal

Autonomous taxes also apply to some expenses — for example 10% on entertainment and 2.5%–32% on company cars. Holdings of 10%+ kept for a year can qualify for the participation exemption.

The US–Portugal tax treaty

Signed 1994, in force since 1996; the saving clause keeps US taxation of citizens. 28% for non-resident individuals, 25% for companies; 15% under the US treaty (5% for a US company with 25%+ held 2 years).

US citizens & Green Card holdersUS tax obligations for Portuguese company owners

US citizens and Green Card holders are taxed on worldwide income. US owners usually file Form 5471; an Lda can elect to be disregarded (then Form 8858), an SA cannot. GILTI became NCTI for tax years from 2026; Portugal's 15% SME rate is below the 18.9% high-tax threshold — get US advice. Report Portuguese accounts on the FBAR.

Step by Step

How to Register a Company in Portugal

  1. Get personal NIFs

    Non-EU residents can get a NIF without a fiscal representative (one is needed once tax activity starts); since July 2025 a lawyer can request it online.

  2. Choose the route

    Empresa na Hora at a registry desk (€360, same day) or Empresa Online through a lawyer, solicitor or notary with a digital certificate (€220 with standard articles).

  3. Company tax number

    The company's NIPC is issued at incorporation.

  4. Beneficial owners

    Owners of more than 25% declared to the RCBE within 30 days and confirmed each year; since November 2025 only people with a legitimate interest can see it.

  5. Appoint a certified accountant

    Every Lda and SA must appoint a certified accountant (contabilista certificado).

  6. Register for VAT and social security

    Choose the VAT regime (exemption up to €15,000 turnover is optional) and register employees.

Want to live in Portugal and run the company? See the startup guide for the Startup Visa and D2.

Costs & Fees

What Does It Cost to Register a Company in Portugal?

Cost itemNotesAmount
Empresa na HoraSame-day, at a registry desk€360
Empresa OnlineWith standard articles (€360 with custom articles)€220
Share capitalLda, per sharefrom €1
Certified accountantMandatory for every Lda and SAmarket price

Registry fees 2026. Source: InvoiceXpress: creating a company in Portugal in 2026

After Registration

Post-Registration Requirements

  • RCBE

    Owners of more than 25% declared to the RCBE within 30 days and confirmed each year; since November 2025 only people with a legitimate interest can see it.

  • VAT

    23% mainland (13%, 6% reduced); 22% Madeira, 16% Azores; small-business exemption up to €15,000 turnover since 2025.

  • Employer social security

    23.75% employer and 11% employee contributions on salaries.

  • Fiscal representative

    Non-EU residents need one once tax activity starts, unless they use electronic notifications.

Expert Notes

What Americans Should Know Before Registering in Portugal

  • The SME rate and NCTI

    15% plus up to 1.5% municipal surcharge stays below the 18.9% US high-tax threshold — plan with a US adviser.

  • Check-the-box early

    An Lda can be disregarded or a partnership for US tax; an SA cannot.

  • IFICI, not NHR

    20% flat tax for 10 years on income from qualifying highly skilled jobs, research and startups, with most foreign income exempt — not pensions; you must not have lived in Portugal in the previous 5 years.

  • A company does not give you residence

    Non-EU founders need a D2, Startup Visa or another visa.

Registering a Portuguese company is right for you if…

  • You want a low-cost EU company formed in a day.
  • You can budget for a certified accountant.
  • You have US tax advice on Form 5471, NCTI and check-the-box.
  • You have a residence plan if you will live in Portugal.

We work with Portuguese lawyers and certified accountants who set up companies for American founders and coordinate with US tax advisers.

FAQ

Frequently asked questions

What is the most common company type for Americans in Portugal?

The Lda or single-member Unipessoal Lda, with capital from €1 per share, formed the same day.

What is the corporate tax rate in Portugal?

19% in 2026, falling to 18% in 2027 and 17% in 2028. SMEs pay 15% on the first €50,000 and certified startups 12.5%, plus up to 1.5% municipal surcharge.

Do I need a fiscal representative?

Not just to get a NIF. Non-EU residents need one within 15 days once tax activity starts, unless they sign up for electronic notifications.

Is the old NHR 20% regime still available?

No — NHR closed to new applicants in 2024. Its successor IFICI gives a 20% flat rate on qualifying skilled income for 10 years.

When do I need to charge VAT?

You register activity from the start; businesses with turnover up to €15,000 (since 2025) can opt for the small-business exemption, including Ldas.

Portugal

Everything about moving to Portugal

Company formation · other countries

Company formation in other countries

Written by US GO EU Team PortugalResearched from official Portuguese sources · How we research and update

✓ Facts verified 28 September 2026

Ready to Register in Portugal?

Tell us about your business and we'll get back within 2 business days with a clear plan — the first consultation is free.

Book Free Consultation →