Economic & Business Laws — Portugal

Economic and Business Laws for Immigrants in Portugal

*Note: Portuguese immigration and tax law has changed frequently in recent years (D7 visa rules, Golden Visa reform in 2023, NHR replacement in 2024). Always verify current requirements with SEF's successor agency (AIMA), a Portuguese lawyer, or the Portuguese Tax Authority (Autoridade Tributária).*

1. Right to Work by Visa Type

D7 Visa (Passive Income Visa)

• Designed for retirees/those with passive income (pensions, rental income, dividends)
• Does not automatically grant work authorization in the traditional employment sense, but holders can legally work as freelancers/self-employed or take local employment once residency is granted
• Minimum income requirement: roughly €820/month (indexed to Portuguese minimum wage, IAS), higher for dependents

D2 Visa (Entrepreneur/Self-Employment Visa)

• Explicitly for starting a business or working independently
• Requires a business plan, evidence of funding, and often proof of registration steps already underway
• Grants full right to self-employment and business operation

D3 Visa (Highly Qualified Activity)

• For skilled professionals with a job contract or promissory contract from a Portuguese employer
• Tied to specific employment; job changes may require visa amendments

D8 Visa (Digital Nomad Visa) — introduced 2022

• Two tracks: temporary stay (up to 1 year, renewable) and residency (leads to permanent residency path)
• Requires proof of remote work for a non-Portuguese employer/clients
• Minimum income: approximately €3,280/month (4x minimum wage) — verify current threshold
• Cannot work for Portuguese employers under this visa; income must derive from foreign sources

Golden Visa (Investment Residency)

• Since October 2023, real estate investment route was eliminated
• Remaining options: fund investments (€500,000+), job creation (10+ jobs), capital transfer, scientific/cultural donations
• Grants residency rights but does not require Portuguese employment; holders can work if they choose but many use it as a passive residency-by-investment route with minimal physical presence (7 days/year minimum)

EU/EEA/Swiss Citizens

• Free movement rights: no visa needed, immediate right to work, self-employment, or business ownership on equal footing with Portuguese nationals

Family Reunification Visa

• Dependents generally receive derivative work rights matching the primary visa holder's status

2. Starting a Business as a Foreigner

Legal Structures

• Sole trader (Empresário em Nome Individual): simplest, unlimited liability
• Sociedade Unipessoal por Quotas: single-owner limited liability company, minimum share capital as low as €1
• Sociedade por Quotas (Lda): standard limited liability company, multiple shareholders
• Sociedade Anónima (SA): larger corporations, minimum capital €50,000

Registration Process

• NIF (Número de Identificação Fiscal): tax number — prerequisite for virtually everything (banking, contracts, property)
• "Empresa na Hora" ("Company in an Hour"): expedited registration service allowing same-day company formation at designated offices
• Registration with Segurança Social (social security) required within specified timeframe
• Non-EU/EEA residents typically need a fiscal representative in Portugal if not resident

Key Considerations

• No general restriction on foreign ownership of Portuguese companies
• Certain regulated sectors (banking, insurance, media, defense) require additional licensing regardless of nationality
• Freelancers ("Trabalhador Independente") register via Finanças portal and declare activity start

3. Foreign Investment Restrictions

Generally Open Regime

• Portugal maintains a liberal foreign investment policy; no blanket restrictions on foreign ownership in most sectors

Sector-Specific Restrictions

• Defense industry: government approval required
• Media/broadcasting: ownership caps and transparency requirements
• Air transport: EU ownership requirements for airlines (per EU regulations)
• Banking/financial services: regulatory approval from Banco de Portugal required
• Screening mechanism: Portugal has an FDI screening law (aligned with EU Regulation 2019/452) allowing government review of investments in critical sectors (energy, telecommunications, critical infrastructure) — primarily targets non-EU investors in strategic assets

Golden Visa-Related Investment Restrictions (Post-2023)

• Direct real estate purchase no longer qualifies for residency-by-investment
• Eligible funds must have limited real estate exposure per regulatory guidance

4. Property Ownership Rights for Non-Citizens

No Nationality Restrictions

• Non-EU citizens face no restrictions on purchasing residential or commercial property in Portugal
• Full freehold ownership rights identical to Portuguese citizens
• No residency requirement to purchase property

Practical Requirements

• NIF required before any property purchase
• Fiscal representative typically required if buyer is non-resident
• Property transactions typically go through a notary (escritura pública)

Taxes on Property

• IMT (Imposto Municipal sobre Transmissões): transfer tax, progressive rates up to ~8% depending on property value and type (primary vs. secondary residence)
• Stamp Duty (Imposto de Selo): 0.8% of purchase price
• IMI (Imposto Municipal sobre Imóveis): annual property tax, 0.3%–0.8% depending on municipality and property type
• AIMI: additional tax on high-value properties (above €600,000 for individuals)

Special Considerations

• Some rural/agricultural land purchases by non-EU buyers historically required additional authorization (verify current status — restrictions have been loosened over time but check with a local lawyer for specific regions)

5. Banking Access for New Immigrants

Opening a Bank Account

• NIF is mandatory before opening any account
• Major banks: Millennium BCP, Santander Totta, Novo Banco, CGD (Caixa Geral de Depósitos), Banco BPI

Documentation Typically Required

• Passport/ID
• NIF
• Proof of address (Portuguese or foreign, varies by bank)
• Proof of income/employment
• Some banks require an initial minimum deposit (varies, e.g., €250–€1,000)

Non-Resident vs. Resident Accounts

• Non-resident accounts: can often be opened remotely before arrival (some banks now allow this digitally), but may have more limitations or higher fees
• Resident accounts: full access once residency documentation (título de residência) is obtained

Practical Notes

• Some digital banks (Revolut, N26, Wise) operate in Portugal and offer faster onboarding, though not all landlords/institutions accept them for rental deposits or formal transactions
• Banks increasingly request tax residency declarations under CRS (Common Reporting Standard) for automatic exchange of information with home countries

6. Labor Law Protections for Immigrant Workers

General Framework

• Portuguese Labor Code (Código do Trabalho) applies equally to immigrant and native workers once legally employed
• Minimum wage (Salário Mínimo Nacional): €820/month (2024 figure — verify current year's rate, as it's typically updated annually)

Key Protections

• Written employment contracts: required, must specify terms, salary, working hours
• Working hours: standard 40-hour week, with overtime regulations and mandatory rest periods
• Annual leave: minimum 22 working days paid vacation
• 13th and 14th month payments: common practice (holiday and Christmas subsidies), often legally mandated depending on contract type
• Social security contributions: employer (~23.75%) and employee (~11%) contributions fund healthcare, pension, unemployment benefits
• Termination protections: just cause requirements, notice periods, severance pay based on tenure

Anti-Discrimination Provisions

• Portuguese law prohibits discrimination based on nationality, race, or immigration status in employment
• ACT (Autoridade para as Condições do Trabalho): labor inspectorate that immigrants can report violations to
• Undocumented workers still retain certain baseline protections (unpaid wage claims, workplace safety) even though their employment status may be irregular — this is an important but complex area of law

Work Permit-Specific Issues

• Employer-sponsored visa holders (D3) may have contractual dependency on employer, creating vulnerability — changing jobs typically requires visa amendment/notification to authorities
• Portugal has provisions for regularizing undocumented workers with proof of employment contracts and social security contributions (historically a relatively accessible path compared to other EU states, though policy shifts occur)

Union Rights

• Immigrant workers have the right to join Portuguese trade unions regardless of nationality or visa status

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Key Recommendations

• Consult a Portuguese immigration lawyer for visa-specific work authorization nuances, as rules on D7/D8/Golden Visa change frequently
• Engage an accountant (contabilista certificado) for business registration and tax compliance — mandatory for most company structures
• Verify current AIMA procedures — Portugal dissolved SEF in 2023 and transferred immigration functions to the new Agency for Integration, Migration and Asylum (AIMA), causing procedural backlogs and changes
• Check current NHR (Non-Habitual Resident) status — this favorable tax regime for new residents was largely discontinued for new applicants starting 2024, replaced by a more limited incentive scheme; this significantly affects the economics of relocating
• Monitor Golden Visa program changes — eligibility criteria have shifted substantially and may continue to evolve

More about immigrating to Portugal