Portugal has been attracting growing interest from international entrepreneurs looking to develop their business in the European market.
But one of the most frequent questions is: can you open a company in Portugal without living in the country?
The answer is yes! A foreign national can set up a Portuguese company, even if they live in another country and have no intention of moving to Portugal.
There are, however, some procedures and obligations worth knowing before you go ahead.
1. Do you have to live in Portugal to open a company?
No. Portuguese law allows foreign nationals, whether resident or non-resident, to be shareholders of companies incorporated in Portugal.
This means you can set up a Portuguese company while continuing to live in France, Germany, the United Kingdom, the United States or any other country.
You can also act as manager without living in Portugal, although the related tax and social security obligations need to be reviewed for your specific situation.
Important: setting up a company in Portugal does not automatically give you the right to live or work in the country.
2. What documents are needed?
The documents required depend on the entrepreneur’s nationality, country of residence and the type of company they want to set up.
Generally, you will need:
- a valid identity document, such as a passport or national ID card;
- a Número de Identificação Fiscal (NIF), the Portuguese tax identification number;
- a residential address;
- identification of the shareholders and managers;
- information on the business the company will carry out;
- the share capital and the company’s registered office.
In some situations, additional documents or a power of attorney may also be required.
Foreign nationals who do not yet have a Portuguese NIF must obtain one before the company is incorporated.
3. Can the company be set up entirely remotely?
Yes, in many cases.
Portugal offers online company formation, so the process can be completed without travelling to the country.
However, the applicable identification and digital signature requirements must be met.
Where the entrepreneur does not have the means to use the online platform, other solutions can be considered, including incorporation through a duly authorised representative.
That is why, before starting the process, it is important to assess which option best suits each client’s situation.
4. Does the company need an address in Portugal?
Yes. Every Portuguese company must have a registered office in Portugal.
That does not mean you have to rent a physical office, though.
One alternative is a business domiciliation service, which lets you use a professional address as the company’s registered office.
It is important to make sure that mail sent by the Portuguese authorities, in particular communications about access to the Autoridade Tributária (the Portuguese tax authority) and the Segurança Social (Portuguese social security), is properly received.
5. Do you need an accountant in Portugal?
Yes. Portuguese commercial companies are subject to the organised accounts regime (contabilidade organizada) and must be supported by a Contabilista Certificado, a Portuguese certified accountant.
This professional ensures compliance with accounting and tax obligations, including, where applicable:
- IVA returns (Portuguese VAT);
- the annual IRC return (Portuguese corporate income tax);
- the Informação Empresarial Simplificada (IES), the annual accounting and tax information return;
- reporting of invoicing data;
- payroll processing;
- tax and social security obligations related to the company’s business.
Even if the manager lives abroad and the company has few transactions, the legal obligations still apply.
6. Do you need to open a Portuguese bank account?
The company must have a banking solution suited to its business and its obligations.
Opening a business bank account may require additional documents, especially when the shareholders and managers are non-residents.
Some banks allow remote procedures, but conditions vary depending on the bank and the client’s profile.
It is advisable to look into this before the company is incorporated, to avoid difficulties when the business starts.
7. What about taxes?
As a rule, a company incorporated in Portugal is subject to Portuguese tax obligations, regardless of where its shareholders live.
The main taxes include IRC and, where applicable, IVA.
However, the tax residence of the shareholders and managers, the location of the clients and the country where the business is actually carried out can affect the tax treatment.
It is especially important to look at possible double taxation and the applicable international tax treaties.
Each situation should be reviewed individually, to make sure the chosen business structure is appropriate and tax-compliant.
Conclusion
Opening a company in Portugal without living there is entirely possible.
But for the process to run smoothly, it is essential to prepare the documents properly, choose the right legal structure and understand the tax and accounting obligations.
Having a trusted partner in Portugal can make all the difference.