EU credibility with Madeira tax efficiency
Portugal is a strong European base for founders, investors and international groups looking for EU access, reliable banking, manufacturing opportunities and flexible investment structures.
The Madeira IBC and Free Zone structures are especially attractive for international operations because they can offer a 5% corporate tax rate when properly structured and compliant.
Portugal is best suited for compliant businesses that need transparent operations, proper accounting, VAT reporting and long-term European credibility.
6 Portugal structures — choose the right one
Portugal offers flexible structures for normal businesses, Madeira tax planning, free zone operations, Golden Visa investments and market entry.
Best for all products and services. Suitable for consulting, SaaS, trading, e-commerce and local EU business expansion. Can invoice, hire and sign lease agreements in around 2 weeks.
Used for international operations, investments and holding structures. Major advantage is the 5% corporate tax regime when properly compliant.
Best for holding and trading activities. Suitable for international trade, export-import operations and cross-border structuring with 5% tax.
Suitable for flexible investments, residency strategies and EU relocation planning. Requires government approval and resident legal representative.
Best for short-term projects and foreign company expansion. It is not a separate limited liability entity, so the parent company may remain exposed.
Used for marketing, research, brand presence and networking. It cannot invoice customers or conduct commercial operations.
| Structure | Best Use | Tax | Invoice Ready | VAT | Bank | Cost |
|---|---|---|---|---|---|---|
| Tax-Resident LLC ★ | All products & services | 21% | 2 weeks | 23% | Abanca | €15,200 |
| Madeira IBC | Intl. operations | 5% | 3 weeks | 22% | Caixa Bank | €18,050 |
| Free Zone LLC | Holding & trading | 5% | 5 weeks | 22% | Bank of Portugal | Contact us |
| Golden Visa LLC | Flexible investments | 21% | 2 weeks | 23% | Deutsche Bank | Contact us |
| Branch Office | Short-term projects | 21% | 3 weeks | 23% | Novo Banco | €14,400 |
| Representative Office | Marketing & research | 0% | Cannot invoice | None | CGD | €13,450 |
Portugal's specialist low-tax structure
Madeira IBC is commonly used for international operations, holding companies and cross-border business structures.
A major advantage for eligible international businesses and investment structures.
Typical setup period for incorporation, tax numbers, banking and operational readiness.
Approximate engagement cost for Madeira IBC setup and support.
VAT may apply to local customer sales depending on activity and registration status.
What we handle for you in Portugal
Tax-resident LLC, Madeira IBC, Free Zone LLC, Golden Visa LLC, branch office and representative office setup with registration and documentation support.
Bank account opening support with Portuguese and international banks including KYC preparation, business plan and compliance documentation.
Corporate tax, VAT registration, annual accounting, bookkeeping, compliance filing and accountant coordination for Portuguese entities.
Investment migration, residency planning, legal representative coordination and structure selection for qualifying Portugal investment routes.
Office rental, employee recruitment, payroll setup, employer compliance and operational launch support in Portugal.
Madeira IBC, holding companies, free zone planning and cross-border structures for investors, founders and multinational businesses.
Who should incorporate in Portugal?
When Portugal is not the right fit
Start your Portugal company today
Tax-resident LLC, Madeira IBC, Free Zone LLC, Golden Visa LLC, branch office or representative office — incorporation, banking, tax, VAT and compliance support handled end-to-end.