Portugal, actually like any other country in Europe, is interested in attracting investments from abroad. For this reason, the state Agency for Competitiveness and Innovation IAPMEI established the Portugal Startup Visa programme in 2018, which is still active. Within its framework, a citizen of any country is able to turn his or her own startup project into reality, even without having anything but an innovative and promising idea. At the same time, it is possible to obtain a Portuguese startup visa – first with residence permit, then with permanent residence.

 

During the existence of this programme, thousands of promising startups have enriched the investment market in Portugal. Initially, the majority of its participants were Portuguese themselves. Today, almost half of the startup founders are from other countries, including Ukraine.

 

The startup industry in Portugal is extremely diverse, covering a variety of economic sectors. For example, all kinds of Internet companies, companies specialising in artificial intelligence, machine learning, low code, digital health, remote work are successful. If you also have an innovative idea and a desire to profit from it, then we recommend opening a startup in Portugal. Below we will talk about how to do it properly and comfortably.

 

What opportunities a startup visa in Portugal opens up

It is possible to get a visa in this jurisdiction online, for which it is enough to submit an application to the Regulator through the corresponding service. In general, this process will take no more than three months, which will result in obtaining a visa and residence permit not only for the business owner, but also for his team (up to 5 team members can go to Portugal to get a startup visa).

 

With a startup visa you will have access to:

 

  • Receiving organisational, legal and other assistance from an incubator (accelerator) that will supervise your project. Such an organisation can significantly simplify the work of a foreign company. Financial assistance in the jurisdiction is provided by business angels, investors, venture capital funds and government grants.
  • Opening a bank account with an opportunity to establish connections and business contacts with clients from all over the world. You will forget about problems with foreign currency accounts, money transfer and bank controls.
  • The opportunity to live in a safe environment, well designed for a happy, measured life – Portugal is one of the top 3 most peaceful countries, with a low crime rate and a well-developed social sector. If you are interested in a startup visa, you can move to Portugal with your family, with your spouse entitled to work and your children entitled to local education.
  • Scale up an existing business – once you have established a company and obtained a startup visa, you can expand into the European market with millions of potential customers. No initial investments will be required.
  • Low-cost residence permit – to obtain a startup visa you need to prove that you have at least 8460 euros for each member of your family.
  • Free visit to Schengen countries for 90 to 180 days – a startup visa opens entry to Portugal, as well as Austria, Belgium, Denmark, Estonia, France, Norway, Switzerland, etc.
  • Optimised taxation – if you stay in the country for 183 days or more per year, you will become a tax resident, which opens access to the right to use the ten-year preferential tax status of Non-habitual Resident. This means that you do not have to pay tax on foreign income if it is already paid in a country with which Portugal has a double tax treaty.
  • Citizenship after 5 years – after living here for the specified period of time, you are eligible for permanent residence, and due to the fact that you are doing business in Portugal, the chances of your application being approved are significantly increased.

 

And on top of that, with a Portuguese passport, visa-free visits to 187 countries around the world become available, as well as the possibility of dual citizenship.

 

Main features of the Startup Visa in Portugal

The Startup Visa programme operates strictly within the framework of Portuguese legislation. The rules for obtaining a visa for its participants are stipulated in Articles 60, 80 of the Portuguese Immigration Law. The residence permit in Portugal through the Startup Visa is valid for 2 years, after which an extension for another 3 years is required. To maintain the visa it is sufficient to reside in the country for at least 6 consecutive months during the year. If you break this rule, such as frequent travelling, because of which you will not be able to accumulate a six-month uninterrupted stay, then you will have to spend up to 8 months annually in the country in total.

 

To get approval of the incubator and, accordingly, residence permit will be able only if your project is related to innovation and technology. For example, if you want to open a bakery, you will be refused, but if you decide to organise a network of automatic bakeries, then you will definitely become a ward of some accelerator. In other words, for IAPMEI it is important that your business idea has the necessary level of innovation, as well as being easily scalable and matching the market potential. It also takes into account how experienced your team is and how many jobs the company can create in the long run.

 

There is mandatory seed capital for a startup in Portugal, but you can’t do without investing in your own project. It will not be possible to predict at once exactly how much money will be needed, as the total number can fluctuate significantly. To a large extent, this figure depends on the size of the project and its stage of development. As a rule, you will need to invest at least 50,000 euros. However, small and medium-sized business owners always have the opportunity to take advantage of non-refundable government grants, the amount of which is never less than 50,000 euros.

 

Startup requirements

The Portuguese Startup Visa is quite simple compared to similar programmes in the Netherlands and the UK, for example. It has less stringent requirements for projects than other jurisdictions. It can take up to 3-4 months to prepare the necessary documentation.

 

Important! Migration requirements have changed slightly: previously you had to provide proof that you were renting for 3 months in advance. From 2023, they already require a 12-month lease agreement registered with the tax office.

 

A prerequisite for participation in the programme is a contract with a local startup incubator. Prices for the services of such organisations vary considerably – from 200 to 1.2 thousand euros per month. As a rule, the less services an incubator provides, the cheaper it costs. At the same time, registering a startup in Portugal with the support of an incubator is usually much easier. It will also be easier for you to get used to the local environment, interact with government services, and apply for available grants.

 

According to the Startup Visa programme requirements, employees can only be hired under an employment contract for a minimum of 2 years. At the same time, more than 50% of the staff cannot be hired on a technical visa if the main activity is not carried out on the territory of Portugal.

 

To apply, the applicant must fulfill the following minimum requirements:

 

  • Citizenship of a non-EU country.
  • Age above 18 years of age.
  • Availability of higher education with a minimum of a Bachelor’s degree.
  • At least 5 years of work experience in the industry in which the company is planned to open.
  • Proficiency in at least one of the following languages: English, Portuguese, French or Spanish.
  • Absence of any criminal record.
  • A bank statement confirming an account balance of 8,460 euros or more – this amount is the annual minimum subsistence level established in Portugal.

 

Main requirements for the project

The main objective of the company should be to utilize innovative achievements, technologies and knowledge in its work. The start-up visa programme only accepts entrepreneurs who intend to work in a scalable way, i.e. to enter the international market. For example, if you are interested in business immigration to Portugal on a startup visa, you need to open not an ordinary clothing shop, but a marketplace. Or, for example, you should not open a chain of shops and hire salespeople, but create a virtual seller and hire IT specialists who will support and develop your project.

 

Important! It is impossible to register a company without an accountant. Even for a small business with a team of 1-2 people, it is still necessary to outsource to a local accounting specialist.

 

Requirements to the business plan and financial indicators

A business plan should be submitted to IAPMEI even for those entrepreneurs whose project is still at the business idea stage. It is necessary to prepare an overview and analysis of the market and develop a roadmap. The main thing is that the information submitted should be structured, concise and clear. In addition to the business plan, a presentation should be submitted to outline the plans for scaling up, the digital component of the project, and the benefits your project will bring to the Portuguese economy. At a minimum, it must be able to employ 5-10 people in the next 5 years and have an annual turnover of at least 325,000 euros (again, in the next 5 years).

 

Who can obtain a Portuguese start-up visa

Up to five members of the project can be listed in the application for this visa, and it is important that the applicant does not have citizenship of any EU country. In addition to the owner of the future company, family members can also obtain a residence permit:

 

  • A spouse with whom the applicant is in a registered marriage (or in a civil partnership recognised by the state). Incidentally, he or she must not have a criminal record.
  • Children under 18 and over – there are requirements for older children, including that they must not be married, must be financially independent of the applicant and studying in Portugal.
  • Parents – as with older children, must have a separate family budget.

 

Relatives, as well as the entrepreneur himself, must prove to the Portuguese government that they have sufficient funds to live in Portugal. Thus, the minimum amount in their account must be around €8,460 (depending on the national minimum wage). Each adult relative needs to prove possession of at least 50% of this amount, for minor children – 30%.

 

How business incubators help entrepreneurs

The IAPMEI agency officially cooperates with more than 130 incubators – special organisations that take care of startup companies for a certain fee. They operate throughout the country, so that every entrepreneur can start a business next to an established entrepreneurial community.

 

The incubators present in Portugal differ in their focus and selection criteria. For example, some are focused on mentoring and networking, while others focus on directly helping young businesses. The set of basic services in such organisations is usually the same, but depending on the specifics of the incubator, they may, for example, provide assistance in rapid entry into the global market or mastering the local market for science and art. There are also options designed exclusively for technology start-ups. If you want to make the best possible choice, contact the managers of the various incubators beforehand and find out what services they provide, their costs, etc..

 

Once the incubator approves your project, you have to sign a contract with them within 40 days, usually for 1 year. After you receive the residence permit, it is not necessary to sign a new contract, as the entrepreneur will no longer be considered a newcomer in need of assistance. It is only possible to extend the co-operation if you consider it necessary.

 

Depending on the incubator’s policy, the entrepreneur can expect to:

 

  • Receiving expert assistance, for example, in preparing documents and reports to the tax authorities.
  • Providing a platform for networking with investors.
  • Sharing experience with other entrepreneurs.
  • The opportunity to rent a co-working space for your team.

 

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You will then be able to apply for a visa at the consulate. As soon as it is approved, the migration service will automatically tick it and you can go to Portugal.

 

How to get a startup visa to Portugal: step-by-step description

This process is fully automated and takes place through the government’s online portal. If all requirements are met, there is a high chance of approval. The procedure for obtaining a startup visa is done in stages.

 

Preparation of the business plan

An important stage, the success of the whole procedure depends on the correctness of its fulfilment. It takes about 2 months to prepare a business plan with a financial justification. It may be subsequently requested by a bank to open an account or to participate in a government programme.

 

The basis of the project should be presented with concrete figures and facts with a textual, visual description as a supplement. Use only up-to-date data supported by relevant sources of information when writing the business plan. Describe all possible risks, the company’s strategy with realistic goals, and all effective tools to achieve them.

 

Gathering the documentation package

You need to prepare:

 

  • Scan, photo of the foreign passport.
  • Business plan.
  • Motivation letter describing the project itself with development prospects.
  • Tax number NIF, as well as, if available, the number of social insurance.
  • A document confirming the absence of legal problems from your country of residence at the time of visa application.
  • A certificate from the bank stating that you have the minimum allowed amount in your personal account for non-residents. If you have money in a foreign bank account, prove the possibility of transferring it to a Portuguese bank.
  • CV describing education, work experience with attached letters of recommendation and educational certificates.

 

Submitting an online application

All required documents together with the application are submitted through the IAPMEI website, where you need to fill in all fields in English or Portuguese. The data provided here will determine whether you will be approved or not. First you need to register on the website (fill in the 7-field form), then activate your account via an email to your email address.

 

The application form consists of 5 pages, each of which is dedicated to certain information:

 

  • On the first, you provide basic, brief information about the project.
  • On the second page, information about all project participants.
  • On the third, you note the applications to the incubators.
  • On the fourth, you describe the project in detail.
  • On the fifth, you specify special information depending on the type of your business.

 

Waiting for a favourable verdict on the project from one of the incubators

Earlier, you sent applications to business incubators. Once one of them approves your project, you need to complete the form on the IAPMEI website. The visa application will then move to the final level and will be pending approval.

 

Obtaining project approval from IAPMEI

The Agency for Competitiveness and Innovation will take up to 30 working days to review your application. You can track the status in your personal account on the IAPMEI website. An approved application implies the need to sign a contract with the accelerator on the website within 40 days of approval. You will receive a declaration of participation in the Portugal Startup Visa programme. It is valid for 180 days. This is what you will use to apply for your visa.

 

Registering your visa to enter Portugal

This process is carried out at the Portuguese Consulate in your country of residence. Here you will be issued a visa for 4 months, which can be used for two visits to Portugal. The date of your visit to the immigration office to submit documentation for a residence permit is noted in the visa.

 

To obtain an entry visa, the consulate will ask for:

 

  • Passport.
  • Declaration of participation in the Portugal Startup Visa programme.
  • 2 photographs.
  • Travel medical insurance.
  • Certificate of no criminal record.
  • Bank certificate on the availability of the necessary amount of money.

 

Important! Having a valid Schengen visa exempts you from the need to overcome this stage. You are free to enter Portugal and apply for a residence permit at the Immigration Service (SEF).

 

Obtaining a residence permit in Portugal

Before applying for a residence permit, you must already have rented or bought a property in Portugal. The title deed or lease agreement must be submitted to the SEF when applying for a residence permit. In addition to the documents described above, you must also agree to a criminal record check in Portugal.

 

The validity of a first-time residence permit is 2 years. To extend it for another 3 years, you must reside in the country for at least 6 consecutive months per year or at least 8 months in total per year.

 

Comparison of a startup visa with other visas for doing business in Portugal

A fairly wide range of visa solutions are available to non-resident entrepreneurs in this jurisdiction. Some of the most popular include:

 

  • D2 visa – intended for those wishing to start any business in Portugal, not necessarily related to innovation. There is no need to sign a contract with an incubator, but you will have to prove that you have the amount of money needed to launch the project. It can be formalised within 2-3 months. You need to reside in the country for 6 consecutive months or 8 months in total for a year.
  • “Golden Visa” – allows you to obtain a residence permit for investing in the Portuguese economy and property, etc.. For example, an entrepreneur can invest in a new or any existing company in Portugal from 500,000 euros, creating 5 jobs, or start a company from scratch and create 10 jobs, and then can count on a residence permit. It is not necessary to reside in the country permanently, it is enough to be present here 14 days in total for two years. Family members can be included in the application for residence permit.

 

Thus, the startup visa and the D2 visa have a lot in common, in particular the processing time and the time of residence in Portugal. “Golden visa” will have to be issued for at least 8 months, and spend a larger amount, but necessarily reside in Portugal can be only 2 weeks in 2 years.

 

What is good and bad about the Portuguese startup visa?

Among the main advantages, the following should be emphasised:

 

  • There are no requirements to necessarily deposit a specific amount to invest in the business.
  • Fairly short processing time.
  • Possibility to include up to 5 team members in the application, as well as online submission.
  • If you have a Schengen visa, you can immediately apply to SEF.

 

The main disadvantages are represented by:

 

  • Strictly limited areas for doing business.
  • The need to cooperate with incubators on a mandatory basis.
  • Excessive attention of IAPMEI agency to each, even minor details of your project.
  • Obligatory residence in Portugal and the lack of possibility to immediately include family members in the application for residence permit.

 

Assistance of Lawrange lawyers and attorneys in obtaining a startup visa in Portugal

If you are interested in business immigration to Portugal on a startup visa, our team is ready to provide qualified assistance in this task. During the initial consultation, we will conduct a detailed assessment of your case. Then we will assign a personal consultant who will accompany and guide you through each registration stage.

 

Our experts will help you:

 

  • draw up a business plan;
  • collect the necessary documents;
  • fill in the application form on the IAPMEI website;
  • conclude a contract with the best incubator;
  • apply for a residence permit;
  • prepare a quality CV for each participant;
  • obtain a tax number, etc.

 

You will have many questions along the registration path, and we are ready to provide a detailed answer to each of them. All bureaucratic delays will be taken care of by our team.

 

Conclusions

Portugal offers some of the best conditions for starting and running a startup business in the EU. Those who wish to settle down in this jurisdiction can open a company related to innovation and in return get a residence permit with the possibility of permanent residence. If you are also one of those who need a startup visa in Portugal, then carefully approach the study of this issue and the preparation of all the necessary documents. This will determine how successful the visa application process will be. Well, in order to exclude any, even minimal, risks of refusal, we recommend using the help of the Lawrange team.

 

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