Starting a Business in Portugal

Thinking about starting a business in Portugal? With its strategic location, supportive startup ecosystem, and attractive tax benefits,

This guide breaks down the essential elements for starting a business in Portugal, covering everything from legal steps and financial considerations to human resources and growth strategies.

Portugal’s Rise as a Competitive Business Destination

Over the past ten years, Portugal has emerged as a significant player in Europe’s entrepreneurial ecosystem.

Indicator	Value
Global Competitiveness Rank	39th (World Economic Forum, 2023)
GDP Growth (2022)	2.2%
Key Growth Sectors	Technology, Tourism, Real Estate

Portugal’s blend of political stability, advanced infrastructure, and pro-business culture has made it an ideal location for launching startups.

Understanding the Business Environment in Portugal

Portugal’s business culture emphasizes relationships, personal interactions, and trust. Entrepreneurs benefit from networking and participating in local business communities.

Business Traits	Description
Business Culture	Relationship-oriented, formal, and trust-driven
Strong Sectors	Tech, Tourism, Real Estate, Renewable Energy
Networking Opportunities	Frequent events, incubators, and entrepreneurship clubs

Legal Framework for Starting a Business in Portugal

Portugal has streamlined its business registration process through initiatives like Empresa na Hora ("Company in an Hour"), making it easier than ever to set up operations.

Legal Requirement	Description
NIF (Tax Number)	Required for all business transactions
Company Registration	Via National Registry or Empresa na Hora
Business Licenses	Vary by activity; some can be acquired online
Recommended Support	Business consultants or legal advisors

Financial Considerations and Funding

Portugal provides financial support and incentives to startups, particularly in innovation and tech.

Financial Indicator	Figure/Note
Corporate Tax Rate	21% (standard); lower rates for SMEs/startups
Average Venture Capital Growth (5 yrs)	5.2% CAGR
Avg.. Monthly Wage	€1,200 (2023)
Government Support	Grants via IAPMEI, Portugal Ventures

Human Resources & Labor Market

Portugal’s workforce is multilingual, highly educated, and relatively affordable compared to other EU countries.

Factor	Details
Average Monthly Salary	~€1,200 (2023)
Labor Laws	Strong employee protections; contracts are required
Recruitment Methods	Job portals, agencies, and professional networking

Understanding Your Market and Customers

Market research is key before starting a business in Portugal. Consumers are digitally engaged and open to innovative products.

Market Insights	Data (2022–2023)
Online Retail Penetration	10% of total retail sales
E-commerce Penetration	~70% of the population
Key Consumer Trends	Digital adoption, sustainability, and personalization

Business Infrastructure and Logistics

Portugal offers robust physical and digital infrastructure to support new businesses.

Infrastructure Component	Details
Office Rent (Lisbon)	€21.25/m²/month for prime locations
Logistics	Well-connected ports, road, and rail systems
Internet & Tech	5G coverage, strong fiber network
E-commerce Growth (2022)	12.4%

Steps to Start a Business in Portugal with INLIS Consulting

Step	Action Required
Step 1: Get a NIF	Upload passport and proof of address; receive NIF in 3–10 days
Step 2: Open a Bank Account	We help you to open your Bank Account
Step 3: Register the Company	Complete setup via INLIS Consulting
Step 4: Apply for a Visa	Digital Nomad Visa available for remote entrepreneurs

Challenges to Anticipate

While Portugal is business-friendly, there are hurdles like bureaucracy and cultural differences.

Common Challenge	Solution
Bureaucratic Procedures	Use business consultants or “Empresa na Hora”
Language Barriers	Partner with local professionals
Cultural Nuances	Attend networking events; learn basic Portuguese

Portugal ranks 77th in the World Bank's Ease of Starting a Business Index (2022), largely due to bureaucratic delays.

Success Stories: Inspiration from Portugal

Company	Industry	Key Takeaway
Talkdesk	Cloud-based SaaS	Scaled globally from Lisbon HQ
Uniplaces	Student Accommodation	Solved a niche problem for global students
Feedzai	Fintech/Data Science	Attracted major international investments

Useful Resources for Entrepreneurs

Resource	Purpose
IAPMEI	Government support and funding
Startup Portugal	Ecosystem navigator and guidance
Inlis Consulting	Company setup and documentation
Business Incubators	Beta-i, Startup Lisboa, Founders Founders

Growth and Expansion Opportunities

Portugal serves as a gateway to the wider European market. Once your business is established, consider:

• Expanding to other EU countries

• Leveraging e-commerce platforms

• Participating in European innovation programs (e.g., Horizon Europe)

Conclusion

Starting a business in Portugal offers a compelling blend of affordability, talent, innovation, and global access. By understanding the legal, financial, and cultural aspects, and using the right tools and networks. You can successfully turn your business idea into a thriving venture.

Whether you're a digital nomad, a first-time founder, or an expanding business owner, Portugal provides fertile ground for growth.