Many immigrants in Portugal dream of working for themselves: a mini-market, a restaurant, a delivery business, a phone shop or freelance work. If you want to open a business in Portugal, there are two main paths. You can work as a sole trader (self-employed, often called recibos verdes), or you can create a company, usually a Lda. This guide compares both, with the main costs and the rules about accountants.
First: check your residence status
Before you start, make sure your residence permit allows you to work for yourself or run a business. Different permits have different conditions. If you are not sure, ask AIMA or a lawyer before you start. Starting a business does not by itself give you a right to stay in Portugal.
You will also need:
- a NIF (tax number) with your Portuguese address;
- a NISS (social security number);
- a Portuguese bank account.
Path 1: Sole trader (self-employed)
This is the simplest option. You work in your own name. In Portuguese this is often called trabalhador independente, atividade aberta or recibos verdes (“green receipts”, the old name for the receipts self-employed people issue).
How to start
- Open your activity (início de atividade) at Finanças. You can do it online on the Portal das Finanças or at a Finanças office. Opening an activity is free.
- Choose your activity code(s). This tells Finanças what kind of work you do. Choose carefully, because it affects your taxes.
- Choose your VAT regime. (See below.)
- Issue invoices or receipts for your clients. Many self-employed people issue electronic invoice-receipts (faturas-recibo) on the Portal das Finanças.
VAT (IVA)
According to gov.pt, you may be exempt from VAT under Article 53 of the VAT Code if your turnover is below €15,000 a year (limit for 2026), you do not import or export, and your activity is not excluded. Some activities, such as certain health or education services, are exempt for other reasons.
If you are not exempt, you must charge VAT on your invoices and send periodic VAT returns to Finanças, monthly or quarterly, even in periods with no invoices. The rules for leaving the exemption are strict, so watch your turnover.
Income tax (IRS)
Your business income is taxed through your yearly IRS return, as “category B” income. At the start, most people fall into the simplified regime (regime simplificado). According to the Portal das Finanças, this applies if your yearly gross business income is expected to be €200,000 or less, and you do not choose organised accounting. In this regime, tax is calculated on a part of your income using fixed coefficients.
Social security
Self-employed people must pay their own social security contributions. According to gov.pt:
- People who open an independent activity for the first time usually get an exemption for the first 12 months.
- After that, contributions are calculated on 70% of your average quarterly income.
- There is a minimum contribution of €20 per month, even if your income is low or zero.
The percentage depends on your situation. Official pages show different figures for different cases, so check the current rate for your case with Segurança Social. You also need to send regular declarations of your income to Segurança Social.
Do I need an accountant?
In the simplified regime, you are not required to have a certified accountant. Many people manage alone. But if you choose organised accounting, or your income goes above the limits, you must have a certified accountant (contabilista certificado). Even in the simplified regime, an accountant can save you from costly mistakes.
If you live outside the EU
If your tax address is outside the EU and you start self-employed work in Portugal, Finanças requires you to name a VAT fiscal representative with residence in Portugal before you start.
Path 2: A company (Lda or Unipessoal Lda)
A company is a separate legal person. The most common types for small businesses are:
- Sociedade por quotas (Lda): two or more partners.
- Sociedade unipessoal por quotas (Unipessoal Lda): one single owner.
The main advantage is limited liability. In general, only the company’s assets answer for the company’s debts, not your personal assets (with some exceptions in the law).
Share capital
According to gov.pt, the partners can choose the share capital freely (except in specially regulated sectors), but each share (quota) must be at least €1. The company name must include “Limitada” or “Lda.”.
Empresa na Hora (“company on the spot”)
Empresa na Hora is a government service to create a company in one visit, at a single counter. According to the Justice Ministry:
- Choose a name from the list of pre-approved names, or use a name already approved by the National Register of Legal Persons.
- Choose one of the pre-approved model articles of association.
- All future partners go to an Empresa na Hora counter. You can book on the SIGA platform or app.
- Bring an identity document. A passport or a residence permit is accepted.
Cost: €360.
On the spot you receive the articles of association, an access code to the permanent commercial registry certificate, an access code to the electronic company card and the company’s social security number.
There is also an online option, Empresa Online. gov.pt says online services get a discount. Check the current price before you choose.
After you create the company
- Deposit the share capital (if paid in cash) in a bank account in the company’s name within 5 working days, or hand it over to the company by the end of its first financial year.
- Start of activity at Finanças: the declaration must be signed by a certified accountant and delivered within 15 days. You can name the accountant when you create the company.
- Beneficial owner register (RCBE): register the company’s real owners within 30 days.
- Accountant every year: companies must keep organised accounts, so in practice you need a certified accountant.
Comparison table
| Sole trader | Company (Lda / Unipessoal) | |
|---|---|---|
| Cost to start | Opening activity at Finanças is free | €360 at Empresa na Hora (online can be cheaper) |
| Minimum capital | None | €1 per share |
| Accountant | Not required in the simplified regime | Certified accountant needed |
| Liability | You answer with your personal assets | Generally limited to the company’s assets |
| Paperwork | Lower | Higher (accounts, company tax, registers) |
| Good for | Freelancers, small activities, testing an idea | Shops, restaurants, partners, bigger plans |
Other things to check
- Licences. Restaurants, cafés, shops and some services need permits or registrations, often with the local council (Câmara Municipal). Check before you sign a lease.
- Hiring workers. If you hire, you must register as an employer, make written contracts and declare workers to Segurança Social every month.
- Separate money. Keep business and personal money apart. Use a separate bank account.
- Never use someone else’s name to open a business for you, and never lend your name. You can be responsible for debts and taxes.
Official sources
- Justiça – Empresa na Hora: how it works
- gov.pt – Company by quotas (Lda): constitution
- gov.pt – Guide for independent workers: taxes and contributions (Portuguese)
- Portal das Finanças – FAQ: VAT, IRS and IRC regimes
- Portal das Finanças – Leaflet: NIF and fiscal representation for non-residents (PDF)
- Segurança Social Direta (online account)
- Justiça – Beneficial owner register (RCBE)
This guide is general information, not legal advice. Rules change often; check with the official body before acting. Last updated: 28 September 2026.
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