What is the Non-Habitual Resident (NHR) tax regime?
The NHR regime is a special tax status available to individuals who become tax residents in Portugal and haven't been residents in the previous 5 years. It offers significant tax benefits for 10 years, including exemption or reduced rates on foreign-source income, flat 20% rate on Portuguese-source employment/self-employment income from high-value activities, and exemptions on pensions and certain capital gains. It's particularly attractive for retirees, remote workers, and high-net-worth individuals.
How long does it take to set up a company in Portugal?
The complete process typically takes 2-3 weeks. This includes obtaining a tax number (NIF), reserving the company name, opening a bank account, notarizing articles of association, and registering with the Commercial Registry. Portugal has streamlined its company formation process significantly, and some steps can be expedited through the 'Company on the Hour' (Empresa na Hora) service for immediate registration.
Do I need to be physically present in Portugal to form a company?
While many steps can be completed remotely, physical presence or proper legal representation is typically required for certain procedures, particularly bank account opening and notarization of documents. However, you can appoint a legal representative with power of attorney to handle these formalities on your behalf, making remote company formation feasible.
What are the ongoing costs of maintaining a Portuguese company?
Annual costs typically include: accounting and bookkeeping services (€1,500-3,000), statutory audit if required (€2,000-6,000), registered office services (€500-1,500), legal compliance (€500-1,500), and annual tax filing (€500-1,500). Total annual maintenance costs typically range from €3,000-12,000 depending on company size and activity level.
Can foreigners own 100% of a Portuguese company?
Yes, there are no restrictions on foreign ownership of Portuguese companies. Non-EU citizens can own 100% of a Portuguese LDA or SA. However, non-EU citizens will need to obtain a Portuguese tax number (NIF) and may need specific permits for certain regulated activities. Portugal welcomes foreign investment and has programs specifically designed to attract international entrepreneurs.
What is the Golden Visa program and how does it relate to business?
Portugal's Golden Visa is a residency-by-investment program. While it previously included real estate investment as the main route, recent changes have shifted focus to capital transfer (€500,000), business creation with job creation requirements, or investment in research/cultural heritage. Having a Portuguese company can support a Golden Visa application if it meets the job creation criteria (creating 10+ jobs or 8+ jobs in low-density areas).
What languages are required for company documents?
Official company documents, including articles of association and filings with authorities, must be in Portuguese. Financial statements and tax returns must also be submitted in Portuguese. However, contracts with international parties can be in other languages, and most professional service providers in major cities offer English-language support.
Can I manage my Portuguese company remotely?
Yes, you can manage much of your Portuguese company operations remotely. Portugal has good digital infrastructure, and many administrative tasks can be handled online. However, you must maintain a registered office in Portugal and may need a local representative or administrator. Professional services including accounting, legal compliance, and company secretarial services can be managed remotely with periodic communication.
What are the accounting requirements in Portugal?
Portuguese companies must maintain accounting records according to Portuguese GAAP (SNC - Sistema de Normalização Contabilística) or IFRS for larger companies. Requirements include: maintaining books and records in Portuguese, preparing annual financial statements (balance sheet, income statement, cash flow), filing accounts with Commercial Registry within 6 months of year-end, and statutory audit for companies exceeding two of these thresholds: €3M assets, €6M turnover, 50 employees. Small companies benefit from simplified reporting. Accounting software must be certified by Portuguese tax authorities. Professional accounting services typically cost €1,500-3,000 annually.
How does the Digital Nomad Visa relate to my Portuguese company?
Portugal's Digital Nomad Visa (launched 2022) allows remote workers to live in Portugal while working for foreign employers or clients. If you establish a Portuguese company, you're not a digital nomad but a local business owner, which may be better - you can apply for standard residency as a self-employed person or company director. This often provides more stability and can count toward permanent residence and citizenship (after 5 years). The Digital Nomad Visa is primarily for those working remotely for non-Portuguese entities. Having a Portuguese company opens different, often more permanent, residency pathways.
Can non-residents open Portuguese bank accounts?
Yes, non-residents can open Portuguese bank accounts, though the process is more complex than for residents. You'll need: valid passport, proof of Portuguese address (can be your company's registered office), Portuguese tax number (NIF), proof of income/source of funds, and sometimes a letter from your home bank. Some banks require in-person appearance; others allow remote opening with certified documents. The process takes 2-4 weeks. Having a Portuguese company facilitates the process. Banks like Millennium BCP, Novo Banco, and Santander Totta are experienced with international clients. Once established, you have full access to SEPA payments and EU banking services.
Company Registration in Portugal