What are the benefits of setting up a company in Portugal?
Portugal has established itself as an attractive destination for entrepreneurship and foreign investment. Its economic stability, favourable tax environment and integration into the European Union mean that more and more businessmen are choosing it as their headquarters for their businesses.
In this article, the experts at CE Consulting Portugal explore the advantages of setting up a company in Portugal in 2025 and why it is a strategic decision.

Why set up a company in Portugal?
Before making the decision to start a business in another country, it is important to know its conditions. Portugal offers multiple reasons to be an attractive destination for company formation:
- Stable and predictable economic environment within the Eurozone.
- Lower operating costs than in other Western European countries.
- Modern and well-connected infrastructure, both digitally and physically.
- Skilled and multilingual workforce, ideal for technology, tourism and service sectors.
- Competitive tax system with incentives for foreign investors.
These advantages have positioned Portugal as a key destination for startups, SMEs and international companies.
Benefits of setting up a company in Portugal
The benefits of taking your business to Portugal or creating a company go beyond the tax aspects. They include legal, logistical and strategic advantages that favor business growth.
Benefit 1: Flexible and agile legal framework
Portugal has simplified the processes of incorporating companies. Through the Empresa na Hora program, it is possible to register a company quickly, even digitally.
Benefit 2: Competitive taxation
Corporate Tax in Portugal is 20%, with a reduced rate of 16% for the first €50,000 of profit in small businesses. In addition, the Madeira Free Trade Zone (ZFM) offers additional tax advantages within the European framework.
Benefit 3: Access to the European market
Portugal, as part of the European Union, provides direct access to a market of more than 450 million consumers, removing trade barriers and facilitating international expansion.
Benefit 4: Institutional stability and legal certainty
The country has a consolidated democratic system and a solid legal framework that protects foreign investment, allowing companies to operate with confidence and predictability.
Benefit 5: Innovation and Technology Incentives
Portugal boosts innovation through subsidies and tax deductions. Programs such as Portugal 2030 and Startup Voucher support entrepreneurship in technological and digital sectors, strengthening the business ecosystem.
Benefit 6: Diversity of sectors with high potential
Portugal offers opportunities in sectors such as:
- Tourism and hospitality, with a constantly growing market.
- Renewable energies, with incentives for solar and wind energy.
- Technology and startups, with Lisbon and Porto as digital hubs.
- Agribusiness and food, with demand for sustainable products.
- E-commerce, driven by the digitalization of consumption.
Create your company in Portugal with expert advisors
If you are considering starting a business in Portugal, having a business consultancy in Portugal can facilitate the process and maximize opportunities. Exploring the market with experts will allow you to make strategic decisions and ensure the success of your company.
Need help?