Job Creation Golden Visa

Employment Threshold:

• Standard requirement: Create at least 10 new full-time jobs
• Low-density areas: Reduced to 8 jobs (20% reduction)

Low-Density Area Definition:

• Regions with fewer than 100 inhabitants per square kilometer, OR
• GDP per capita below 75% of the national average
• Includes most of interior Portugal, Alentejo, and parts of the Algarve

Job Qualifications:

• All positions must be full-time employment contracts
• Workers must be legally entitled to work in Portugal (Portuguese citizens, EU nationals, or those with valid work permits)
• Jobs cannot be filled by the applicant or their family members
• Positions must represent genuine employment relationships

Maintenance Period:

• Employment must be maintained for a minimum of 3-5 years
• Compliance with Portuguese labor laws throughout
• Social security contributions must be current

Labor Law Compliance:

• Written employment contracts for all positions
• Compliance with Portuguese minimum wage (€820/month in 2026)
• Adherence to working hour regulations (40 hours/week maximum)
• Paid annual leave (22 working days minimum)
• Social security registration and contributions

Documentation Required:

• Employment contracts for each position
• Social security registration certificates
• Proof of salary payments (bank statements)
• Tax withholding records
• Company registration documents
• Annual compliance reports

Ongoing Obligations:

• Regular payroll tax submissions
• Annual company accounts filing
• Social security contribution statements
• Workplace safety compliance
• Employee training documentation (where applicable)

Branch Office of Foreign Company

• Establish a Portuguese branch of your existing international company
• Branch profits taxed in Portugal (21% corporate rate)
• Simplified setup if parent company is well-established
• Common for multinationals entering Portuguese market

Portuguese Subsidiary (Sociedade por Quotas - Lda)

• Create a new Portuguese limited liability company
• Separate legal entity from parent company
• Most common structure for international investors
• Minimum share capital: €1 (though more capital typical)

Portuguese Corporation (Sociedade Anónima - SA)

• For larger operations requiring share issuance
• Minimum share capital: €50,000
• Required for certain regulated industries
• More complex governance requirements

Sole Proprietorship (Empresário em Nome Individual)

• Simplest structure but unlimited personal liability
• Not recommended for Golden Visa purposes
• Limited credibility for visa applications

While there's no minimum capital investment, operating a business that employs 10 people involves significant costs:

Estimated Annual Employment Costs (10 employees):

Additional Business Costs:

• Office space rental: €500 - €3,000/month depending on location
• Utilities and supplies: €300 - €800/month
• Accounting and legal: €300 - €1,000/month
• Business insurance: €100 - €500/month
• Equipment and technology: Variable

5-Year Minimum Commitment:

• At minimum wages: ~€618,000 over 5 years
• At average wages: ~€1,130,000 over 5 years

This makes the job creation route often more expensive than the €500,000 fund investment, though you retain full ownership and control of the business.

Ideal Candidates:

1. Established International Businesses

   • Companies already planning European expansion
   • Those with proven business models transferable to Portugal
   • Businesses where Portugal offers strategic advantages (timezone, language, EU access)

2. Industrial or Manufacturing Operations

   • Production facilities requiring significant workforce
   • Assembly or distribution operations
   • Food processing or agricultural businesses

3. Service Companies

   • Call centers or customer service operations
   • IT development teams (remote work hubs)
   • Consulting firms with client-facing teams

4. Hospitality and Tourism

   • Hotels or resort operations
   • Restaurant groups
   • Tour operators with local staff

Less Suitable For:

• Solo entrepreneurs or small teams
• Digital nomads seeking passive residency
• Investors without operational business experience
• Those seeking simplest path to residency

Operating in designated low-density areas offers several benefits:

Reduced Job Requirement: Only 8 jobs instead of 10 (20% reduction)

Lower Operating Costs:

• Significantly cheaper real estate (office, warehouse, retail)
• Lower cost of living translates to lower salary expectations
• Reduced competition for workers

Tax Incentives:

• Potential access to regional development grants
• EU structural funds for interior regions
• Special economic zones with reduced taxes

Qualifying Regions Include:

• Most of Alentejo (except Évora city center)
• Interior Norte (Trás-os-Montes, Alto Douro)
• Centro interior (Castelo Branco, Guarda)
• Parts of Algarve (interior municipalities)
• Azores and Madeira (some municipalities)

Consideration: While costs are lower, these regions may have smaller talent pools and less developed infrastructure.

Phase 1: Business Setup (1-3 months)

1. Register company or branch with Portuguese Commercial Registry
2. Obtain Tax Identification Number (NIF) for company
3. Register with Social Security
4. Open Portuguese corporate bank account
5. Establish physical business premises

Phase 2: Employment (3-6 months)

1. Recruit and hire 10 employees (or 8 in low-density areas)
2. Execute compliant employment contracts
3. Register employees with Social Security
4. Begin payroll and tax withholding

Phase 3: Golden Visa Application (12-18 months)

1. Gather employment documentation
2. Obtain personal criminal record clearances
3. Submit application to AIMA
4. Attend biometric appointment in Portugal
5. Receive initial 2-year residence card

Phase 4: Maintenance (Years 2-5)

1. Maintain employment levels
2. Meet minimum stay requirements (7 days/year average)
3. Renew residence permit at year 2 and year 4
4. Continue business operations and compliance

Phase 5: Permanent Residency/Citizenship (Year 5+)

1. Apply for permanent residency or citizenship
2. Pass Portuguese language test (A2 level for citizenship)
3. Demonstrate maintained employment throughout period

Operational Risks:

• Employee turnover requiring replacement hires
• Economic downturns affecting business viability
• Labor disputes or compliance issues
• Portuguese market conditions

Compliance Risks:

• AIMA audits of employment records
• Social security inspection
• Tax authority reviews
• Potential for permit denial if jobs aren't maintained

Financial Risks:

• Ongoing operational costs regardless of business success
• Currency exposure for non-Euro income
• Portuguese corporate taxes on profits
• Potential losses if business fails

Mitigation Strategies:

• Maintain employment buffer (11-12 employees instead of minimum 10)
• Build cash reserves for 12+ months of operations
• Engage local legal and accounting support
• Consider business interruption insurance
• Regular compliance audits

Recommendation: Unless you have a genuine business plan and operational capacity, investment funds offer a simpler, often more cost-effective path to Portuguese residency.