Why Create a Startup in Portugal

Portugal offers various programs tailored to support startups at every stage of their development. Entrepreneurs can access a nationwide network of accelerators and incubators that help them navigate the legal landscape and foster growth. The Portuguese startup ecosystem is steadily expanding, contributing 1.1% to the country's GDP. Portugal has already produced seven unicorns by 2023, making it a hotspot for innovative businesses. The country boasts 13% more startups per capita than the European average and ranks as the 12th most innovative country in the EU.

Intellectual Property in Portugal

Portugal has a robust legal framework for protecting intellectual property, covering a wide range of rights, including patents, models, trademarks, logos, designations of origin, geographical indications, copyrights, and less common rights such as topographies of semiconductors, plant variety rights, trade secrets, and know-how.

The Portuguese Institute of Industrial Property (INPI) plays a crucial role in protecting and promoting industrial property rights, providing valuable assistance to entrepreneurs in meeting legal requirements.

The Patent Box Regime

Portugal introduced the Patent Box regime in 2014, becoming a pioneer in the European Union. This regime has evolved over time, aligning with international standards like the modified nexus approach. In 2022, Portugal enhanced the regime by increasing the tax deduction for income derived from covered intangibles from 50% to 85%. As a result, businesses can benefit from effective tax rates as low as 3.15% to 4.35%, with further reduced rates for companies in Madeira. To qualify for this regime, companies must meet specific requirements, including using covered intangibles in commercial, industrial, or agricultural activity and maintaining separate accounting records.

Startup Visa

Portugal offers a Startup Visa that allows foreign entrepreneurs to either create a startup from scratch or relocate an existing one to the country. To be eligible, entrepreneurs must demonstrate their commitment to producing innovative goods and services with international potential, a focus on technology and knowledge, the ability to create qualified employment, and the potential for significant growth. The assessment considers factors such as innovation, scalability, market potential, the strength of the management team, and job creation prospects in Portugal.

Madeira – A Prime Location for Portuguese Startups:

Madeira, an autonomous region of Portugal located in the Atlantic Ocean, offers a favourable environment for starting and growing businesses. StartUP Madeira, part of the European network of business and innovation centres, provides a dynamic entrepreneurial hub. The region features coworking spaces, funding and investment programs, and support from a technology-focused university. The local government is dedicated to fostering entrepreneurship and attracting foreign investments. Furthermore, Madeira companies benefit from a reduced corporate income tax rate of 14,7% (or 5% for companies with international activities operating in the International Business Centre of Madeira).

Keep this in mind!

While Portugal provides a conducive environment for startups, navigating its business and tax laws can be challenging without the help of local expertise.

NEWCO is a seasoned partner in Portugal with 30 years of local experience. We offer comprehensive services, including business setup and management, accounting, tax compliance, NIF and bank account, assistance in getting a residence permit, and real estate support.

Entrepreneurs seeking to establish a startup in Portugal can benefit from NEWCO's multidisciplinary team and expertise.

Contact us today!