Portugal Lda (Sociedade por Quotas)
Portugal
The Portuguese Lda is the equivalent of a UK Ltd or German GmbH — a private limited liability company. Setup requires a Portuguese NIF tax number for all parties (obtainable remotely via a fiscal representative), articles of association, and registration at the Commercial Registry (Conservatória do Registo Comercial). Portugal joined as an attractive jurisdiction following its NHR tax regime for new residents, making it popular with expats and remote workers from the EU and beyond. Corporate tax at 17–21% is competitive within the EU. Accounting and annual reporting obligations apply. Millenium BCP, Caixa Geral de Depósitos, and Novo Banco are main banking options; digital alternatives like Wise Business are commonly used by non-resident owners. Portugal has no controlled foreign company rules of its own, though EU anti-avoidance directives apply.
Formation Details
- Setup Time
- 7 days
- Setup Cost
- $1,200
- Annual Cost
- $1,500
- Corporate Tax
- 21% standard IRC; 17% on first EUR 25,000 for SMEs; municipal surcharge up to 1.5%; RFAI and other incentives available
- VAT Threshold
- $13,500
- Nominee Directors
- Not allowed
- Public Register
- Yes
- Residency Required
- No residency requirement to own or direct a Portuguese Lda, but at least one manager (gerente) must be appointed. A Portuguese fiscal representative may be required for non-EU owners. Portuguese NIF (tax number) required for all shareholders and managers.
- Banking Difficulty
- Moderate
US Person Considerations
A Portugal Lda owned by US persons is a CFC subject to Form 5471 and GILTI. Portugal has a tax treaty with the United States, providing reduced withholding rates on dividends (5–15%) and interest. US owners residing in Portugal may benefit from the NHR (Non-Habitual Resident) regime or the newer NHR 2.0 IFICI regime for reduced personal tax rates.