Countries/Portugal

Portugal

Starting a business in Portugal

A 21% headline rate, a reduced band for smaller companies, and regional rates in Madeira and the Azores that sit well below both.

Mainland or Madeira IBC?All guides

At a glanceVerified Sep 2026

21%

Corporate tax

17%

First EUR 50,000, SME

23%

VAT

EUR 1

Minimum capital

Verified against official sourcesSee citations →

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Portugal guides

Company formationRegistration steps, costs, timelines and documents.Corporate taxRates, VAT and the reliefs that actually apply.Business lawsCompliance, UBO rules, labour law and penalties.Free zonesChoosing a zone, setup process, mainland comparison.Banking & financeBusiness accounts, payment gateways, crypto rules.Visas & residencyGolden, investor and freelance visa pathways.

The decision that shapes everything: mainland or an autonomous region

Mainland

Lda in Lisbon or Porto

21% corporate tax, 17% on the first EUR 50,000 for SMEs
Municipal derrama adds up to 1.5% on top
Empresa na Hora incorporates in a single visit
Deepest access to staff, banking and advisers

vs

Madeira IBC

Licensed regime

5% on qualifying income until the end of 2028
Requires real jobs and investment in the region
Licence application and ongoing substance tests
Not available for purely passive holdings

All Portugal guides

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