Business Start-up Costs in Portugal

Starting a company in Portugal implies certain costs. This is why an entrepreneur must make his own calculations before starting the procedure of establishing a business in Portugal.

1. What is the minimum share capital?

Before setting up a business, one must decide upon the type of company, since the minim capital required is different. A limited liability company in Portugal needs a minimum share capital of 5,000 EUR, while a Public company requires an initial sum of 50,000 EUR as a minimum share capital.

2. What are the Company Registration fees? 

In order to become legal, a company in Portugal must be registered. The procedures for registration are subject to some fees. Usually estimated costs for registering a company in Portugal range from 3,000 Euros to 6,000 Euros. BridgeWest is able to provide a company incorporation package for an amount below 3,000 Euros (including all necessary related taxes).

3. What are the costs to rent an office space?

Costs for renting an office space in Portugal can reach up to 18.5 EUR per square meter in well situated areas. Surface must be of course taken into consideration for an office in Portugal.

4. What are the costs for a virtual office if the client will not rent a location?

If renting a location goes beyond your budget limit, there is always the alternative of a virtual office in Portugal. Costs are lower and you still benefit from a business address and other corresponding services. Depending on the package chosen, prices for a virtual office in Portugal are situated between 150 and 350 EUR.

5. What is the cost of hiring an employee?

First of all, the salary is the first concern of both an employer and an employee. The average salary in Portugal is 1,600 EUR. Besides, employers must contribute to social security with a 23.75% rate of the gross salary.

6. What are the costs of hiring a local accountant?

In Portugal, a local accountant is ideal for your company, since a specialized person has experience in dealing with balance sheet, invoices and other paper work regarding accounting. The costs are somewhere around 300 EUR per month for a local accountant in Portugal. The price is given by the services and the activity of the company.

7. What is the yearly corporate tax?

Portuguese companies with a profit below 12,500 EUR are subject to a 12.5% corporate tax rate. If the company exceeds this sum as far as profits are regarded, they pay a corporate tax rate of 25% every year.

8. What is the yearly dividend tax?

The standard rate for a Portuguese company in terms of dividends paid to non-resident companies is 21.5%, with exceptions only in the case of an existing tax treaty.