In recent years, one clear trend has emerged in our practice:
an increasing number of clients are choosing to establish companies in Portugal.
At the beginning, most clients raise very similar questions:
“Why Portugal?”
“Is it really necessary to set up a company there?”
From a legal and practical perspective, the answers are often quite clear.
First, as a Member State of the European Union, Portugal represents a legitimate and strategic entry point into the EU market. Many clients are not focused solely on the Portuguese domestic market, but rather on using Portugal as a base to access the wider EU — particularly for businesses involved in trade, shipping, logistics, and cross-border operations.
Second, in terms of company incorporation, Portugal offers a transparent legal framework and clear procedures. Common structures such as the LDA are accessible to small and medium-sized enterprises as well as foreign investors, with relatively low entry thresholds and flexibility to adjust corporate structures as the business develops.
From a tax and compliance perspective, Portugal provides several investment and tax incentive regimes. Notably, the Madeira International Business Centre (MIBC) offers one of the most competitive corporate tax rates within the EU. In addition, Portugal has signed double taxation treaties with numerous countries, which greatly facilitates tax planning and compliant cross-border operations.
Another key issue we frequently raise with clients is residency and family planning. Company incorporation is not purely a commercial decision. In practice, it often intersects with residency options, family reunification, relocation, and even immigration planning. These aspects should be considered from the outset.
Portugal’s legal system is stable and predictable, offering a high level of legal protection to foreign investors. This stability supports long-term business operations and effective risk management.
Among our clients, some seek legal assistance only after encountering difficulties during the process. In most cases, the real risks do not arise from the law itself, but from a lack of familiarity with the system or an underestimation of compliance requirements.
If you are considering establishing a business in Europe, or assessing whether Portugal is the right starting point, we strongly recommend conducting a legal and structural assessment before taking action. Many potential issues can, in fact, be avoided from the very beginning.
Any questions please feel free to reach out or send us a message. Our lawyers will be happy to assist you
