Portugal (PT)
Portugal is a parliamentary republic on the southwestern tip of the Iberian Peninsula, bordered by Spain to the north and east and the Atlantic Ocean to the west — a nation of fado music, Age of Discovery seafaring heritage, golden beaches from the Algarve to the Silver Coast, world-famous port wine and Douro Valley vineyards, and a warm, welcoming culture that has made it one of Europe's most beloved expat destinations.
Capital: Lisbon
Region: Europe
Language: Portuguese
Currency: EUR (€)
Cost of living: Affordable (index 55)
Emergency: 112
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Business Setup
Start a business or go freelance in Portugal.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Obtain your NIF (Número de Identificação Fiscal) at any AT office (free if EU citizen; €10.20 if non-EU with fiscal representative)
- 2 Register your NISS (Número de Identificação de Segurança Social) at Segurança Social
- 3 Open a category at Portal das Finanças: "Início de atividade" — select the appropriate CAE code (Código de Atividade Económica) or professional article (artigo do CIRS) for your work
- 4 Select regime: Regime Simplificado (for annual income ≤€200,000) or Contabilidade Organizada (above €200,000 — requires certified accountant)
- 5 Register your activity with Segurança Social Direta at seg-social.pt (exemption from contributions in first 12 months)
- 6 Issue Recibos Verdes electronically via Portal das Finanças or invoicing software (InvoiceXpress, Moloni, Primavera)
- 7 Pay quarterly IVA returns (if applicable) and annual IRS
Tax registration
Register at Portal das Finanças (portaldasfinancas.gov.pt) under "Iniciar atividade". Choose the correct activity code. Under Regime Simplificado, taxable income = invoiced amount × coefficient (0.75 for most services; 0.35 for some creative activities). File IRS annually by 30 June.
VAT threshold
€13,500/year (2026) — below this threshold, Recibo Verde holders are exempt from charging IVA and do not file quarterly VAT returns. Above this threshold, register for IVA and charge 23% (or 6% for eligible services like food, books, accommodation).
Invoicing
All Recibos Verdes must be issued via the certified electronic invoicing system on Portal das Finanças or approved invoicing software. Must include: your NIF, client NIF (if Portuguese), date, amount, IVA (if applicable), category of activity. Paper receipts are no longer accepted; all must be in the AT-certified e-invoicing system.
Social security
Trabalhadores independentes pay 21.4% social security on their base (rendimento relevante). Base is calculated quarterly based on invoiced income. Exemption for the first 12 months of new activity. Contributions entitle you to sickness benefit, parental leave, and pension accrual. Recibo Verde freelancers are NOT entitled to unemployment benefit (subsídio de desemprego) — this is a key difference from employees.
💡 Portugal's Recibo Verde system is relatively simple for service-based freelancers. Hire a contabilista certificado (certified accountant / TOC) for ongoing compliance — cost €40–80/month for basic services. Major advantage: AT portal is user-friendly and fully electronic. Disadvantage: 21.4% social security plus IRS can be a significant total tax burden — plan for 35–45% of gross income in taxes and contributions at typical freelance income levels.
🏢 Business Structures
ENI · Empresário em Nome Individual
Sole trader / Self-employed individual
None
Min. capital
1–3 days online via empresa-na-hora.pt or Balcão do Empreendedor
Setup time
Liability: Unlimited personal liability — business and personal assets are legally merged.
Setup cost: Free (registration at conservatória do registo comercial). NIF required.
Best for: Freelancers with low liability risk, sole traders, consultants. Simple structure with minimal administration.
Recibo Verde (Trabalhador Independente) · Regime de Trabalhador Independente com Recibos Verdes
Freelancer / Independent contractor issuing green receipts
None
Min. capital
Same day online
Setup time
Liability: Personal liability. Not technically a separate legal entity — just a taxation regime for self-employed individuals.
Setup cost: €0 — register activity with AT via Portal das Finanças and Segurança Social.
Best for: Freelancers, consultants, creatives, expats on D8 or D2 visa. The simplest way to work legally in Portugal. Issues recibos verdes (green receipts/electronic invoices) instead of commercial invoices.
Lda · Sociedade por Quotas de Responsabilidade Limitada
Private limited company (Ltd)
€1 (minimum, though €1,000+ recommended in practice for credibility)
Min. capital
1–5 days via Empresa na Hora; 1–3 weeks via traditional notary process.
Setup time
Liability: Limited to company capital. Directors may be personally liable for specific obligations (tax, social security, if negligence proven).
Setup cost: €360 online via empresa-na-hora.pt + notary fees if doing deeds. Accountant ongoing: €80–150/month.
Best for: Small and medium businesses, expat entrepreneurs, digital agencies, consulting firms. The most common corporate structure in Portugal.
Unipessoal Lda · Sociedade Unipessoal por Quotas
Single-member private limited company
€1
Min. capital
1–5 days
Setup time
Liability: Limited liability for the single shareholder/manager.
Setup cost: €360 via empresa-na-hora.pt. Annual accounts required; certified accountant (TOC/contabilista certificado) mandatory.
Best for: Solo entrepreneurs who want limited liability without partners. Very common for expats setting up in Portugal. Cleaner separation of personal and business finances than ENI.
SA · Sociedade Anónima
Public limited company (PLC / joint stock company)
€50,000
Min. capital
2–4 weeks
Setup time
Liability: Limited to share capital.
Setup cost: €500–1,500 notary + registration. Board of directors required (minimum 3 directors or simplified board of 1 director + supervisory board for smaller SAs).
Best for: Larger companies seeking external investment, IPO-track businesses, or international joint ventures. Not typical for small operations.
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