Business Incorporation

Yes, a foreign national can open a company or business in Portugal. You’ll need a NIF (tax number), and a social security number.

Businesses in Portugal pay a flat rate of 21% on all taxable profits.
On their first €25,000 of taxable profit, small and medium-sized businesses can pay a reduced Portuguese corporate tax rate of 17% (11.9% in Madeira, 12.5% in inland regions).

The earnings and losses that are allotted to a foreign PE of a Portuguese firm are eligible to be excluded from taxation under a scheme that is elective. The regime is applicable provided that (i) the PE is not located in a jurisdiction that is on a "black list," and (ii) the profit that is allocated to the PE is subject to and not exempt from a tax that is outlined in Article 2 of the EU Parent/Subsidiary Directive (Council Directive 2011/96/EU), or a tax that is comparable to the Portuguese CIT and has a legal rate that is not lower than 60% of the standard CIT rate.

Real Estate is one of the most lucrative areas of business to invest in, in Portugal. However, tourism, renewableenergies and agriculture sectors are also quite profitable, with the latter benefiting from or being eligible for certain European Union support programmes.

In spite of its less conventional nature, the information technology industry has also been showing robust development over the course of the last several years and a number of businesses have recently migrated to Portugal, where they will be able to take advantage of this growth.

Other honorable mentions are the automotive, plastic molds, shared services, cork, aeronautical, biotechnology, eco-Innovation & sustainability, building materials, pulp & paper, textiles, petrochemical & chemical, mining and naval construction industries.

Portugal is a highly advanced country in terms of innovation, and sectors such as research and development, the pharmaceutical industry, the engineering sector, and manufacturing sectors are all booming in the country due to the availability of well-developed technology.

Besides that, there are highly qualified professionals in the country and a high rate of people with higher education. The Portuguese are also well known for their high English proficiency, which may make it easier for foreigners to work there and hire qualified people. There are great human resources, a high quality of life and a wide range of business opportunities in this sunny European country. Another great advantage is that you’ll get great internet speed and coverage anywhere in the country. 

Portugal has become quite attractive for foreigners to open business, and the economy is truly thriving. A lot of expats have relocated to several different cities in Portugal and started or relocated their businesses here. As a result, the startup cluster is flourishing in a number of cities: According to Bloom Consulting’s Portugal City Brand Ranking 2022, the top 5 best cities to start a business in Portugal are Lisbon, Porto, Cascais, Braga and Coimbra.