Setting up a company in Portugal
the ideal structure for easy entrepreneurship
Are you looking to set up a company in Portugal, with clear tax rules, a solid image and a stable legal framework?
The LDA is the Portuguese equivalent of the French SARL. It's a flexible, reliable structure, suited to entrepreneurs aiming for European or international business.
And contrary to popular belief, it is perfectly accessible, even for freelancers and small businesses.
In addition to tax advantages, setting up a Portuguese company (LDA) offers a number of advantages: streamlined administrative procedures, flexible share capital, and direct access to the European market. All of which make the LDA an ideal solution for a strategic tool for flexible entrepreneurshipwhile benefiting from a stable, recognized legal framework.
At WizeCounsel, we offer full support for the creation of your LDA, in direct contact with our local office in Porto.
Whether you are self-employed, an investor or the head of an international organization, we can guide you. from A to Zto make your Portuguese company a a real lever for structuring and optimizing.
What types of activities are suitable?
Creating an LDA can be an excellent opportunity for certain activities. However, it's important to note that not all types of business are suitable, especially if the activity is exclusively based in another country. Here are a few examples that lend themselves particularly well to the UK context:
E-commerce and online services : Target an international market with attractive tax advantages.
ConsultingActivities with no specific physical location.
Real estate & rentals
Do you want to invest, manage or rent out property? This framework is perfectly suited to your needs.
Asset holding or flow management: Dividends, royalties or interest can be added, depending on your overall strategy.
Take advantage of Portugal's low interest rates and special schemes for SMEs
Creating a Portuguese structureis to benefit from an advantageous tax system, with a competitive tax rate and targeted exemptions for SMEs.
21 %
IS
23 %
VAT
28 %
Dividends
Setting up a company in Portugal
2,300.00€ INCL. VAT
A structured administrative procedure to create your company in full compliance.
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Setting up your company
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Trade name registration (1 attempt)
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Declaration by associates
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Legal address in Porto
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Administrative coordination of bank account opening
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Follow-up until registration
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A structured information point (defined format and content) with a French-speaking contact person
Services not included
This service covers exclusively administrative procedure for setting up a company.
It does not include
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Unlimited support or continuous exchanges
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In-depth or personalized tax advice
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Comparisons between several countries or structures
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Comprehensive strategic support
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Changes in scope during the procedure
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Post-registration follow-up
Additional requirements can be met by separate services, available as an option.
Additional services (optional)
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Dedicated strategic consultation (90 min)
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Extended support & guided questions (30 days)
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Priority handling
Present in Porto. Locally rooted
I help entrepreneurs set up their business, with a thorough understanding of local procedures and a clearly defined scope of intervention.
Tax comparison: LTD vs LLC vs LDA vs France
England
Income tax
19 % regardless of profit, with a possible reduction to 0 % via the Agency Agreement Law (optimizing between 80 % and 90 % of revenues).
Social security charges
No compulsory employer's contributions if no employees. Below £702/month, no deductions. Between £702 and £3,863: rate of 12 %. Above £3,863: rate reduced to 2 %. No minimum contribution for self-employed managers.
Legal VAT rate: 20 %
Monthly, quarterly, half-yearly or annual returns. Principle of input and output VAT.
Dividends
0 % tax on dividends (paid outside UK).
Other benefits
- No share capital required - Set up in 48 hours - Simplified procedure - Highly flexible status - Ideal in combination with holding companies or foreign structures
United States
Income tax
If 100 % of business is outside the U.S.: no federal tax.
Social security charges
No social security contributions if you have no employees or activities in the United States. Executives are not subject to local social security contributions. No federal minimum wage, total freedom to set compensation levels.
Legal VAT rate: 0 %
No federal VAT. Sales of goods/services outside the U.S. are not subject to local tax. Be aware of local rules if you sell to US customers.
Dividends
0 % tax on dividends
Other benefits
No capital required - Rapid set-up - 100 % online procedure - No declaration of commencement of business required - Start-up on receipt of EIN - No bureaucracy - Structure recognized for its stability and flexibility - Ideal in combination with optimized international strategies
Portugal
Income tax
If sales under €50,000.00: 17% / If sales over €50,001.00: 20%
Social security charges
For the employee: 11% / For the company: 34%. For employees above the minimum wage (€820.00 gross), the employer must pay the employee's income tax.
Legal VAT rate: 23 %
Quarterly declaration. VAT collected and deductible under the actual system.
Dividends
Taxes on dividends: 28 %
Other benefits
Bureaucracy and administration similar to France, Belgium or Spain. - Minimum capital requirement of 500.00 euros - 15 days to declare the start of business after the KBIS extract has been issued by the commercial register (accountant's work) - Company based in Europe and governed by European laws and decrees (which can be an advantage) - Time to incorporate a company under Portuguese law about 3 weeks - Crypto-friendly country.
France
Income tax
Standard rate of 25 %. Reduced rate of 15 % possible for certain SMEs under certain conditions.
Social security charges
For employees: charges between 20 % and 25 % of gross (employee) + 40 % to 45 % (employer). In 2024, above €1,747.20/month: the employer manager is subject to withholding tax.
Legal VAT rate: 20 %
Quarterly declaration. VAT collected and deductible under the actual system.
Dividends
Taxes on dividends: 30 %
Other benefits
- Heavy bureaucracy - Sometimes long registration times - Minimum share capital: €1 (in theory) - Advantage: European company, governed by EU directives - Good banking and administrative image (useful for certain projects)
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Additional files and analyses
