Company Incorporation Golden Visa

Capital Requirement:

• Minimum €500,000 capital transfer for company incorporation
• OR €500,000 share capital increase in an existing Portuguese company

Employment Requirement:

• Create at least 5 permanent full-time jobs
• Maintain employment for minimum 3 years
• Jobs must be genuine positions filled by workers legally entitled to work in Portugal

Company Structure:

• Company must be registered and headquartered in Portuguese territory
• Commercial company format (typically Lda or SA)
• Active business operations required

Alternative Path (Existing Company):
If investing in an existing Portuguese company:

• Increase share capital by at least €500,000
• Create 5 new permanent jobs, OR
• Maintain at least 10 jobs (with 5 being newly created)

Sociedade por Quotas (Lda) — Most Common

• Portuguese equivalent of LLC
• Minimum capital: €1 (though €500,000 required for Golden Visa)
• Liability limited to share capital
• Simpler governance than SA
• Partners hold "quotas" (shares)
• Ideal for small to medium operations

Sociedade Anónima (SA) — For Larger Operations

• Portuguese public limited company
• Minimum capital: €50,000 (€500,000 for Golden Visa)
• Required for certain industries (banking, insurance)
• Shares can be listed on stock exchange
• More complex governance with board structure
• Better for future fundraising or IPO plans

Recommended: Most Golden Visa entrepreneurs choose Lda for its simplicity and flexibility.

What Counts as Capital:

• Cash transferred to Portuguese corporate bank account
• Equipment and machinery (appraised value)
• Intellectual property contributions (with independent valuation)
• Real estate used for business operations (commercial property)

What Doesn't Count:

• Loans to the company (must be equity capital)
• Future commitments or pledges
• Personal assets not transferred to company
• Residential real estate

Capital Must Be Maintained:

• The €500,000 must remain invested in the company throughout the residency period
• Can be deployed into business operations (not required to sit in bank)
• Documented through annual accounts and audits
• Withdrawing capital below threshold risks permit renewal

Proof of Origin:

• Bank statements showing source of funds
• Tax returns demonstrating income/wealth
• Sale contracts if capital from asset sales
• Gift documentation if applicable

Job Specifications:

• 5 full-time permanent positions (not fixed-term contracts)
• Employees must work minimum 40 hours/week (Portuguese standard)
• Cannot include the applicant or family members
• Cannot include other Golden Visa applicants

Compliance Requirements:

• Written employment contracts conforming to Portuguese labor law
• Social security registration for each employee
• Minimum wage compliance (€820/month in 2026)
• All statutory benefits (22 days leave, sick pay, etc.)

Maintenance Period:

• Employment must be maintained for minimum 3 years
• Brief gaps during employee turnover acceptable
• Extended vacancies may jeopardize renewal
• Consider maintaining 6-7 employees as buffer

Low-Density Area Benefit:
Unlike the pure job creation route (which drops from 10 to 8 jobs), the Company Incorporation route doesn't have an explicit low-density reduction. However, operating in low-density areas may provide other benefits (tax incentives, grants).

Capital Structure:

Annual Operating Costs (Estimates):

5-Year Total Cost Projection:

• Initial capital: €600,000 - €700,000
• Operating costs (5 years): €737,000 - €917,000
• Total: €1.3M - €1.6M

Potential Revenue Offset: Unlike fund investment, a successful business can generate revenue to offset costs. Profitable operations can make this route more cost-effective long-term.

Tech Founders

• Establishing European HQ or development center
• Startups with product-market fit seeking EU expansion
• Remote-first companies building Portuguese teams
• AI, fintech, or SaaS companies

Venture Builders

• Serial entrepreneurs with capital and experience
• Those acquiring and scaling Portuguese businesses
• Investors who prefer operational control

Established Business Owners

• Companies expanding from US, UK, or other markets
• Franchisees establishing Portuguese operations
• Professional services firms (consulting, accounting, legal)

E-Commerce Operators

• EU fulfillment and customer service operations
• Portuguese-language market expansion
• Dropshipping or marketplace businesses

Not Ideal For:

• Passive investors (choose funds instead)
• Those without business management experience
• Solo operators without team-building plans
• Those seeking simplest path to residency

Phase 1: Planning & Legal (Weeks 1-4)

1. Define business plan and structure
2. Engage Portuguese lawyer and accountant
3. Draft articles of incorporation
4. Open personal Portuguese bank account (for capital transfer)
5. Obtain personal NIF (tax number)

Phase 2: Company Formation (Weeks 4-8)

1. Reserve company name (Registo Nacional de Pessoas Coletivas)
2. Open corporate bank account
3. Transfer share capital (€500,000+)
4. Execute incorporation documents at notary
5. Register with Commercial Registry (Conservatória)
6. Obtain company NIF and Social Security number

Phase 3: Operational Setup (Weeks 8-16)

1. Register for corporate taxes
2. Establish business premises
3. Set up accounting systems
4. Begin recruitment process
5. Execute employment contracts
6. Register employees with Social Security

Phase 4: Golden Visa Application (Months 4-18)

1. Gather all corporate documentation
2. Obtain personal criminal record clearances
3. Submit ARI application to AIMA
4. Attend biometric appointment
5. Receive residence permit

Timeline: Expect 4-6 months from decision to operational company, plus 12-18 months for Golden Visa approval.

Corporate Taxation:

• Standard corporate income tax: 21%
• Municipal surcharge: 1.5% (most municipalities)
• State surcharge: 3-9% on profits above €1.5M
• Effective rate for SMEs: ~22-23%

Reduced Rates Available:

• SME rate: 17% on first €25,000 of profit
• Interior regions: potential for reduced rates
• Startup incentives: Various programs available

Personal Tax Considerations:

• Salary from company taxed as employment income (progressive rates up to 48%)
• Dividends: 28% flat rate (or progressive if declared)
• IFICI regime (NHR 2.0): 20% flat rate on qualifying income for 10 years

VAT:

• Standard rate: 23%
• Reduced rates: 13% or 6% for specific goods/services
• Registration required above €14,500 annual turnover

Social Security:

• Employer contribution: 23.75% of gross salary
• Employee contribution: 11% (withheld from salary)
• Directors/managers: 21.4% on statutory director remuneration

Instead of starting from scratch, you can qualify by investing in an existing Portuguese company:

Requirements:

• Share capital increase of at least €500,000
• Must create 5 new jobs, OR
• Maintain at least 10 jobs with 5 being newly created

Advantages:

• Existing operations and revenue
• Established employee base
• Market presence and customer relationships
• Potentially faster path to profitability

Considerations:

• Due diligence required on existing operations
• Integration of your capital and management
• Existing liabilities and obligations
• Minority vs. majority stake implications

Common Scenarios:

• Acquiring majority stake in Portuguese SME
• Investment in Portuguese startup (Series A/B)
• Partnership with existing Portuguese business owner
• Acquisition of distressed assets with restructuring plan

Key Decision Factors:

• Choose Company Incorporation if you have a viable business plan
• Choose Funds if you want passive, regulated investment
• Choose Job Creation if you have large-scale employment needs