Jurisdiction overview: Portugal
Portugal is an attractive EU jurisdiction for international business thanks to its political stability, competitive tax framework, and access to European financial systems. Company registration in Portugal is well-suited for consulting, IT, trade, holding activities, and businesses planning to combine operations with EU residency.
The standard legal form is the LDA (Sociedade por Quotas) – a private limited liability company. It can be registered remotely by a single shareholder and director, who may be foreign nationals. The minimum share capital is €1, though a higher capital (e.g. €1,000–€5,000) is often recommended for credibility. Incorporation typically takes 3–10 business days.
Portugal applies a standard corporate tax rate of 21%, with a reduced rate of 17% on the first €25,000 of taxable income for small companies. Businesses registered in the Madeira International Business Centre (IBCM) may qualify for a 5% tax rate, subject to substance requirements. Portugal also has over 75 double tax treaties, making it attractive for holding and trading structures.
A Portuguese company can obtain a VAT number, open accounts in EU banks, and integrate with SEPA and SWIFT systems. It is also a strong base for entrepreneurs planning to apply for a residence permit in Portugal through business activity.
Portugal’s transparent legal system, access to European markets, and tax flexibility – including the IBCM regime – make it a compelling choice for international business structuring.