How to Apply for E-Residence in Portugal?
As of 2021, the program did not launch yet. So, we do not have details on how to apply.
As soon as we do, we will post in detail what documents need to be gathered, and how to submit the application, as well as the rest of the process.
Opening a Bank Account in Portugal
As an e-resident in Portugal, you will most likely need to open a bank account. Unlike most countries in Europe, it is rather straightforward to open a bank account there.
The prerequisite to opening a bank account in Portugal is obtaining a tax identification number called Número de Identificação Fiscal (NIF). Don’t worry, that’s very easy to do.
Here’s our guide to getting a NIF in Portugal and to opening a bank account in Portugal.
Setting Up a Business in Portugal
As a foreigner, who is interested in setting up a business in Portugal, the e-resident status will give you lots of ease. However, before the details of the Portuguese e-residency program is out, you still have a couple of methods available to start a business there.
Regardless of the method, the first steps are always:
- Get a Portuguese residency card (e-residency will cover you on this)
- Get a tax number (NIF that we referred to above) from the Portuguese Tax Office
- Get a social security number from the Portuguese Social Security
Assuming that you already have a business idea, a company name, and an address, you then need to decide on the legal structure of the business. There are a few business types available in Portugal:
- Sole Trader
- Single Member Limited Company
- Individual Limited Liability Establishment
- Private Limited Company
- Public Limited Company
- Partnership
- Limited Liability Partnership
- Cooperative
If you are a freelancer, you will probably be interested in one of the first four options above.
You have three available methods to set up the company:
- Setting up Online (Empresa Online)
- Setting up On-the-Spot (Empresa de Hora)
- The traditional Way (Criacao de Empresa), this one is rather old-school and a bit cumbersome.
Taxes In Portugal
Self-employment income and business income are classed as Category B Income in Portugal’s income tax system. These can be taxed under a simplified regime.
The VAT tax rate is 23% on goods other than basic necessities, food, and drink in Portugal. For all income tax there is a progressive rate.
The tax year in Portugal runs from January 1st to December 31st.
Who Is Behind the Program?
Startup Portugal is working on the program in collaboration with the Portuguese Government. Startup Portugal is a semi-public and semi-private think tank in charge of creating and running government initiatives on thriving the entrepreneurship community in Portugal.
