Setting up a company in Portugal means investing in a resilient, innovative and dynamic country that has learnt to capitalise on its best resources to thrive.
NEWCO is your local partner to make this a reality. We provide comprehensive management services, from company incorporation and accounting set-up to the ongoing fulfilment of tax and statutory obligations.
Portugal offers a competitive tax environment within the European Union. The tax rate is 19% – in the Autonomous Region of Madeira it is even lower (13.3%) – and also offers:
Setting up a company in Portugal may seem straightforward. But it is precisely by underestimating the complexity of this process that the most common mistakes arise: poorly chosen structures, ignored tax obligations, missed deadlines and avoidable fines. Without local knowledge, it is difficult to anticipate the unknown.
Working with an experienced local partner, such as NEWCO, is what distinguishes a well-executed incorporation from one that will cause problems later on.
Our multidisciplinary team, comprising lawyers, tax specialists and certified accountants, will guide you through every stage of the process, with solutions tailored to your needs.
We offer a personalised service tailored to your needs. We analyse your situation and propose strategic solutions that allow you to optimise results and take advantage of the benefits of setting up a company in Portugal:
We work with foreign entrepreneurs setting up their first European entity, international groups establishing a subsidiary in Portugal, and expanding SMEs that need a solid legal and tax structure from day one.
We also work with lawyers, tax advisers and other intermediaries who need a trusted local partner to assist clients investing in Portugal.
We analyse your situation, the nature of your business and your objectives. Shortly afterwards, we send you a clear and detailed service proposal.
Once you have accepted the proposal, we carry out a due diligence process in accordance with AML/CFT legislation. This is a mandatory, straightforward step that we handle.
We handle the entire incorporation process:
We take care of the bookkeeping, tax obligations and ongoing support. You’ll have direct contact with your dedicated chartered accountant and account manager. Whenever you need us, just send an email.
You can contact us directly to clarify any specific queries.
The most common structure for foreign investors is the Sociedade por Quotas (Lda), which is the Portuguese equivalent of a limited liability company. It requires a minimum share capital of €1, has a simple structure and is suitable for most SMEs and subsidiaries. Larger operations or companies seeking to raise external capital usually opt for a Public Limited Company (SA). If your aim is to hold assets or manage investments across multiple jurisdictions, a Portuguese holding company structure can offer significant tax efficiency, particularly given Portugal’s participation exemption regime.
With proper preparation, a standard Lda can be incorporated in 1 to 3 weeks. The main variables are how quickly the shareholders can obtain their Portuguese tax identification numbers (NIF), whether a Portuguese bank account is required before or after incorporation, and the complexity of the corporate structure. Delays most often arise due to missing documentation, apostille requirements for foreign documents, or bank onboarding times. Working with a local partner such as NEWCO significantly reduces both incorporation times and the risk of errors requiring subsequent correction.
The standard rate of corporation tax (IRC) is 19% on taxable profits. However, SMEs benefit from a reduced rate of 15% on the first €50,000 of taxable profits. VAT is charged at 23% for the majority of goods and services, with reduced rates of 13% and 6% applicable to specific categories.
Portugal also has an extensive network of double taxation treaties, which is often a key consideration for international groups structuring their investments through a Portuguese entity.
It is always worth noting that companies incorporated in the Autonomous Region of Madeira benefit from a substantial reduction in tax rates.
Yes. There are no nationality or residency requirements for partners or managers of a Portuguese company. However, all directors and shareholders will need a Portuguese tax identification number (NIF). If the company has employees or engages in regulated activities, additional registrations may be required. For groups with complex cross-border ownership, it is worth reviewing the substance requirements under Portuguese and EU anti-tax avoidance rules.
All Portuguese companies are required to maintain organised accounts in accordance with Portuguese accounting standards, submit an annual corporate income tax return (Form 22) and a statement of accounting and tax information (IES), and submit quarterly or monthly VAT returns, depending on their turnover. Companies with employees must also maintain payroll records in accordance with the law and make monthly social security contributions. A certified accountant is a legal requirement for all companies.
Yes! We work with law firms, tax consultants, family offices and trustees. We handle all the operational aspects: incorporation, accounting, compliance and tax consultancy. We are accustomed to working within the workflows and confidentiality standards required by professional intermediaries and would be delighted to discuss how a referral agreement or partnership could work for your practice.
