Portugal D2 Visa: how to open a company and get a residence permit for entrepreneurs

What is the Portugal D2 visa?

The D2 visa suits foreign entrepreneurs who plan to do business in Portugal. They must buy a local company or its shares or create a branch of an existing legal entity. Another option is to establish a new company in the country and provide a detailed business plan describing the prospects for its development.

With a Portugal D2 business visa, the applicant obtains a residence permit for themselves and their family members. Within four months after the visa issuance, the entrepreneur applies for a residence permit from the Agency for Integration, Migrations and Asylum of Portugal, AIMA. After five years of living in the country, they can apply for permanent residence or citizenship.

The D2 visa minimum investment in a business is not set. To maintain residency, the entrepreneur must spend 18 months continuously, or 16 months in total, over 2 years in Portugal.

A foreigner confirms housing availability in Portugal through a lease or sale agreement to obtain a residence permit. Additional costs for a D2 visa include health insurance, which costs at least €400.

How to get a Portugal residence permit

5 benefits of the Portugal D2 Visa

1. Easy obtaining rules. An entrepreneur does not need to select a specific industry or receive approval from a business incubator. Besides, there is no requirement for permanent passive income outside Portugal or minimum investment amount.

2. Visa-free travel. Residents may stay in the Schengen countries for 90 days out of 180.

3. Favourable business environment. Portugal is considered a reliable jurisdiction with a stable economy and banking system. In 2022, Portugal's economy grew 6.7%. This is its strongest rate in 35 years, thanks to domestic demand and thriving tourism.

Portuguese banks demonstrate greater efficiency than the average EU indicator. By the end of December 2022, their cost-to-income ratio was 46%, whereas EU banks averaged a higher 61%.

4. Moving to Portugal. A foreigner may immigrate with the whole family and live by the Atlantic Ocean. They get access to affordable and high-quality healthcare and education. Besides, Portugal is a safe place to live and ranks seventh in the Global Peace Index 2023.

5. Citizenship in 5 years. After maintaining temporary residency for five years, an entrepreneur may apply for permanent residency or citizenship. It is required to speak Portuguese at the A2 level. The first passport can be kept if the country of origin allows it.

Practical Guide

Will you obtain business residency in Portugal?

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Who can get Portugal residence permits with a D2 business visa holder?

An entrepreneur's spouse, children, and parents can obtain temporary residence permits in Portugal based on family reunification. At the same time, children over 18 and parents confirm financial dependence on the main applicant.

The spouses must be officially married or in a civil partnership recognised by the state. For example, a civil union, "pareja de hecho", is registered in Spain. It's a contractual relationship between two people living together.

If the entrepreneur moves to Portugal with a family, the requirements for a bank account balance will be higher: in addition to €11,040, the applicant adds €5,520 for each adult relative and €3,312 for a child.

Portugal D2 visa documents

The main applicant, who is over 18 years of age, provides a certificate of no criminal record and documents for the company and confirms the availability of €11,040.

The standard set of documents for a D2 visa to Portugal includes the following:

1. A visa application.
2. 2 colour photographs of 3x4 cm.
3. A passport and its copy.
4. A bank statement.
5. A contract for the lease or sale of an apartment in Portugal.
6. A certificate of no criminal records with an apostille.
7. Permission to check criminal records in Portugal.
8. Health insurance.
9. A business plan.
10. If the company is already open, founding documents and financial statements.
11. If the company has not yet been opened, a statement from the Bank of Portugal on the availability of money to open a company.

Other types of non-investment visas

A Portugal Startup Visa is issued for opening an innovative startup based on a business incubator. It's a way to move to Portugal with the whole team, even if the applicant only has a business idea.

The Portugal D3 (HQA) Visa is obtained by highly qualified foreigners who enter into a contract with companies in Portugal. Applicants confirm compliance with the position with a diploma of vocational education.

The Portugal D7 Visa requires passive income and real estate to live in Portugal. Income is considered rent, dividends or pension.

All three types of visas allow the addition of family members: a spouse, children and parents.

Comparison of Portugal’s visa types 

The Portugal Golden Visa is an investment way to obtain a temporary residence permit. The minimum investment to participate in the state program is €250,000.

The investor and their family apply immediately for a residence permit and come to Portugal for 7 days each year to maintain residency.

Investment options for the Portugal Golden Visa include buying shares of investment funds, creating a company or investing in an established one, and supporting art and cultural projects or research activities.

Individual cost calculation for residence by investment in Portugal

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Tax incentives for Portugal D2 visa holders

Companies in Portugal pay an income tax of 21%. 

A special tax regime for Non-habitual Residents (NHRs) offers benefits to new Portuguese tax residents for 10 years. Obtaining an NHR only provides complete tax relief on some foreign sources of income. Each source of income and country of origin is considered to qualify for tax exemption.

A flat income tax rate of 20% applies to the income of qualified professionals who work for local companies or are self-employed in Portugal. Without the NHR status, income tax is levied progressively from 14.5 to 48%.

A flat income tax rate of 10% applies to pension payments from other countries. The rate applies if the foreigner obtains the status of a non-permanent resident after April 1st, 2020. Without it, pension income tax is paid on a progressive scale ranging from 14.5 to 48%.

Portugal does not tax income or pension benefits if the taxes are paid in the country of origin. To avoid double taxation, you must check if there is an agreement with the government of first citizenship.

In 2024, the NHR tax program will conclude. Existing Non-habitual residents in Portugal will retain their advantages throughout their 10-year term. New applicants must submit their applications by December 31st, 2023. Those with valid residence visas and who aim to become tax residents in Portugal by December 31, 2023, can apply for the NHR until March 31, 2024.

Advantages of doing business in Portugal

Ease of starting a business. Registration of a company in Portugal takes 24 hours. The main organisational and legal forms are LDA, an analogue of a limited liability company, and SA, a public company for entrepreneurs with large capital.

SA (Sociedade Anónima) is the standard format for companies with an authorised capital of €50,000 or more. Involves at least five shareholders.

How to open a company in Portugal

Regions with reduced rates. The Azores and Madeira enjoy preferential tax treatment. The areas have an autonomous status and are less economically developed than Lisbon and Porto, so their governments attract investment with incentives.

Three types of companies prefer registration in Madeira:

• holdings for the provision of consulting and other professional services at the international level;
• shipping, registration of yachts, and oil platforms;
• placement of warehouse and industrial premises.

If in the main territory of Portugal, the corporate tax is 21%, then in Madeira, the rate is 5%.

Doing business in a comfortable country for life. Portugal is one of the five safest countries in the world, behind Iceland, New Zealand and Austria. The relaxed environment and Portuguese friendliness attract investors to the country.

The Portuguese business community is open to foreign investors and entrepreneurs. Managers and employees of companies speak English, French and Spanish, which facilitates the development of international relations in the country.

Favourable geographical position. Portugal is located in the southwest of the continent, with access to the Atlantic Ocean and the border with Spain. A developed railway network provides access to European economies.

Portugal maintains cultural and economic ties with Brazil, Angola, Mozambique, Cape Verde, China, and other countries. It has been a member of the European Union since 1986; it adheres to the rules of the free movement of goods, capital, services and labour.

Portugal D2 Visa for UK citizens after Brexit

UK entrepreneurs affected by the loss of access to the European market post-Brexit can benefit from the Portugal D2 Visa and immigrate from Portugal to the UK. This visa leads to permanent residency after five years and the opportunity to apply for citizenship after the same duration, restoring the privileges lost due to Brexit.

The D2 Visa grants the ability to live in Portugal and work in the EU market, making life after Brexit significantly more manageable.

Portugal D2 Visa for crypto traders

For a long time, Portugal was considered a cryptocurrency tax haven. Crypto traders used Portugal's D2 visa to move to the country and join the benefits of the lack of crypto regulations. 

But by the end of 2022, the government has proposed a 28% tax on capital gains from cryptocurrencies held for less than a year. The 2023 State Budget featured a short section addressing the taxation of cryptocurrencies, which to date have been untouched by the Portuguese tax authorities, given that digital assets were not recognised as legal tender.

The State Budget also proposes a 4% taxation fee for free transfers of cryptocurrencies in instances of inheritance and stamp duties on commissions charged by intermediaries involved in the cryptocurrency sector.

How to get Portugal residency by investment

The Portugal Golden Visa can be an alternative for a D2 visa. It is a state program for obtaining a residence permit in Portugal in exchange for investments from €250,000. The applicant chooses an option from two investment groups: business or science and culture.

Investments in science and culture imply:

• €500,000 — for research activities;
• €250,000 — to support the cultural heritage of the country.

Business investments include:

• €500,000 — purchase of units of investment funds or venture capital funds intended for the capitalisation of companies with a maturity of at least five years;
• €500,000 — in the authorised capital of a Portuguese company with the creation of at least five permanent jobs;
• opening a new company in Portugal with the creation of ten jobs.

The investor can include family members in the application: spouses, children and parents. Spouses, parents over 65 and children under 18 participate in the investment program without restrictions. Children aged 18 to 26 confirm their financial dependence on the applicant and study full-time at a university. Parents under 65 must be financially dependent on the investor.

Portugal D2 Visa checklist

1. An entrepreneur with a D2 visa can move to Portugal, a country with a great business environment, mild climate, clean beaches, and a rich culture.
2. The rules for obtaining a D2 visa contain fewer requirements for the activities of an entrepreneur than startup visas: you do not need to select a specific industry and receive approval from a business incubator. Compared to the D7 visa, the applicant does not require a permanent passive income in another country.
3. The D2 visa leads to a residence permit in Portugal. With a residence permit card, cosmopolitans visit other Schengen countries without visas and spend 90 days there every six months.
4. New tax residents of the country can obtain Non-habitual Resident status for 10 years. It allows you to pay income tax in Portugal at a flat rate of 20%.
5. Companies enjoy benefits if they operate in the free economic zone in Madeira.
6. After 5 years in the status of a resident, foreigners apply for permanent residence or citizenship. Portugal recognises second citizenship. The first passport can be kept if the country of origin allows it.
7. With a Portuguese passport, you can visit 172 countries without visas and live in Portugal or another EU country.

Frequently Asked Questions