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Foreign company setting up in Portugal

A foreign company moving into Portugal chooses between incorporating a Portuguese subsidiary, registering a branch, or operating without a fixed presence. That choice decides whether a permanent establishment exists and, with it, the obligation to keep organised accounts and pay IRC in Portugal.

Your situation

Your company already exists elsewhere and you want to operate in Portugal: hire, invoice locally, open an office or bid for contracts.

Subsidiary or branch?

Subsidiary (Portuguese LDA) Branch
Legal personality Its own The parent’s
Liability Limited to capital The parent’s
Accounting Full Portuguese accounts Portuguese, for local activity
Local perception A Portuguese company A foreign company
Setup Empresa na Hora possible Registration with legalised documents

Permanent establishment: the central question

Whether you have a permanent establishment in Portugal determines whether profits generated there are taxed under IRC. It turns on fixed premises, duration and authority to bind the company. The double tax treaty with the parent’s country sets the applicable tests.

What EA handles

Incorporation through our partner solicitadora (a licensed Portuguese legal professional), a non-resident entity NIF, registered office, Portuguese accounting, payroll for local staff, and coordination with your accountant back home.

The EA services for this situation

  • Company formation in Portugal

    Incorporation is handled by a partner solicitadora — a regulated Portuguese legal professional entitled to incorporate companies. EA Contabilidade collects the shareholder and company details through a full form, passes the file to the solicitadora, and then handles the RCBE, Segurança Social registration, the NISS and opening a bank account.

  • Company accounting

    Monthly accounting for a Portuguese company costs between €120 and €500 per month plus VAT, depending on size, document volume and how complex the business is. It covers bookkeeping, periodic IVA returns, IRC calculation and the annual accounts.

  • Registered business address

    A registered business address with EA Contabilidade costs €20 per month plus VAT on a 24-month commitment, €30 per month on 12 months, or €35 per month with no commitment. It includes the registered office address, mail reception, email notification, scanning and forwarding according to the plan.

  • Payroll and HR

    Payroll is included in your monthly accounting for the director's payslip. Each additional payslip costs €10 per month plus VAT. The service covers the calculation, the payslip, filings with Segurança Social and the tax authority, and joiners and leavers.

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