Portugal Startup Visa: The Ultimate Guide

Last update: April 10, 2024

Portugal, a member of the European Union, is an increasingly attractive destination for businesses. Its strategic location, welcoming business environment, and friendly tax regime make it ideal for foreign entrepreneurs. The country’s economy has transformed from traditional manufacturing to a more diversified and service-oriented one. Despite some challenges, Portugal offers numerous opportunities for businesses willing to navigate the market and build strong relationships with local partners.

Portugal Startup Visa Program

The Portugal Startup Visa Program, run by IAPMEI, grants residency to foreign entrepreneurs with innovative business ideas. It simplifies immigration for founders launching a qualifying startup in Portugal.

Approval allows you to live, work, and develop your business in Portugal, offering a fast track to residency and access to the European market. While there’s no minimum investment, you’ll need to show sufficient funds for living expenses (government-set amount, adjusted annually) and get your idea endorsed by an accredited incubator or IAPMEI.

Must Read: What is a Startup Visa?

Why Choose Portugal

Portugal Strong Economy

Portugal’s economy entices businesses with several strengths. Its strategic location in Europe allows easy access to a vast market. The government actively welcomes foreign investment with tax breaks and streamlined bureaucracy. While Portugal is addressing a housing shortage, its overall affordability and high quality of life remain attractive for businesses looking to establish themselves in Europe.

Portugal Startup Ecosystem

Portugal’s startup ecosystem is growing, boasting several successful companies. The tech sector is experiencing significant growth with government support and private investments. The country has produced a notable number of unicorns, solidifying its position as a rising European tech hub.

Portugal Startup Support and Facility

Portugal offers strong support for startups through a network of numerous incubators. The startup ecosystem contributes a modest amount to the GDP, but its growth is promising. Portugal has been recognized as one of the top innovation hubs in Europe, attracting entrepreneurs with its supportive environment.

Portugal’s Quality of Life

Portugal offers a high quality of life, known for its warm climate, affordable cost of living, and exceptional safety. The country’s rich culture, excellent healthcare system, and friendly locals make it an attractive destination for both tourists and expats.

Portugal Startup Visa Eligibility

Who can apply for a Portugal Startup Visa

The Portugal Startup Visa Program attracts international entrepreneurs with innovative tech-based ideas by offering a streamlined path to residence and work visas.

Here’s what you’ll need to qualify:

• Develop innovative products or services.
• Focus on technology and knowledge with plans for groundbreaking offerings.
• Demonstrate potential for creating skilled jobs.
• Project your business to reach a turnover of over €325,000 per year or have assets exceeding €325,000 per year after 5 years in the program.

Portugal Startup Visa Requirements & Documents

• Valid Passport
• Business Plan: This should include a comprehensive description of your startup idea, its innovative aspects, and how it will address a market need.
• Motivation Letter: Explain why you are passionate about this project, its potential for growth and scalability, and why you believe Portugal is the ideal location for your business to flourish.
• Portuguese Tax Identification Number (NIF) and Social Security number (Segurança Social) (if applicable): These can be obtained after your initial application is approved.
• Police Clearance Certificate with Apostille: An apostille is an official seal that verifies the document’s authenticity. You’ll need a certificate from each country you’ve resided in for over a year.
• Proof of Financial Support: This demonstrates you have sufficient funds to cover living expenses for at least 1 year in Portugal. The current minimum amount is €5,800, but it can change annually. If the funds are outside Portugal, you’ll need to show proof of transferability to a Portuguese bank account.
• CV

Portugal Step-by-step guide

Step 1: Business plan, papers, and Startup Visa application

The first step involves crafting a solid business plan and gathering all the required documents. Once you have everything prepared, you’ll register on the IAPMEI website and submit your application online through the Startup Visa platform.

Step 2: Receive an incubator’s permission for your project

After submitting your application online, you’ll need to secure approval from a certified incubator on the Startup Visa Program website. You can apply to multiple incubators to increase your chances. Once at least one incubator gives you the green light, you can then proceed to the next step, which is sending your application to IAPMEI for evaluation.

Step 3: Receive approval for your application

Following incubator approval, IAPMEI assesses your Startup Visa Program application within 30 business days. If successful, you’ll have 40 working days to sign a contract directly on the program website with the incubator. This finalizes your agreement for project acceleration and grants you a declaration of participation in the program, valid for 180 days.

Step 4: Securing Your Entry Visa

The next step is obtaining a visa to enter Portugal. You’ll apply at the Portuguese consulate in your home country. This visa, valid for four months with two permitted entries, allows you to travel to Portugal and initiate the residence permit process. The visa itself will specify a date for your visit to the Portuguese immigration service (SEF) to formally apply for residency.

Documents Required for the Entry Visa:

• Valid Passport
• Declaration of Participation in the Portugal Startup Visa Program
• 2 Passport Photos
• Travel health insurance covering emergency care and repatriation
• Certificate of No Criminal Record
• Bank statement demonstrating sufficient funds to cover minimum living expenses in Portugal

Alternative with a Valid Schengen Visa:

You can skip this step entirely if you already possess a valid Schengen visa. A valid Schengen visa allows direct entry into Portugal, where you can then schedule an appointment with SEF and submit your residence permit application.

Cost & Fees

Government Visa Application Cost

Breakdown of Startup Visa Expenses:

• Living Expenses: You’ll need to demonstrate access to funds for at least one year in Portugal. The current minimum amount is €5,146.80, but this can change annually.
• Accommodation: Renting a one-bedroom apartment in Portugal typically costs €7,000+ per year. However, there’s no requirement to show a specific property or rent amount for the Startup Visa application.
• Government Fees: The startup visa application fee is €90, and the residence permit fee is €85.05.
• Total Cost: €12,322+

Family Reunification Costs:

Once you obtain residency, your spouse, children under 18, and parents of both spouses can apply for family reunification visas.

Children over 18 can qualify if they’re unmarried, full-time students at a Portuguese university.

To sponsor their residence, you’ll need to show proof of sufficient funds to support them. The required amount is based on 50% of the minimum wage for each adult and 30% for each child.

Average Program Fee

The cost of incubators in Portugal varies. Programs differ in length (3-12 months), services (mentorship, co-working space), and location (cities are pricier). Check the Portugal incubator page for specifics.

Corporate TAX rate

• The normal Corporate Income Tax (IRC) rate is 21% in mainland Portugal.
• 20% in the Autonomous Region of Madeira.

Cost of Living in Portugal

• A single person’s estimated monthly costs are €661.4 ($719.6) without rent.
• The family of four’s estimated monthly cost is €2,334.5 ($2,539.9) without rent.

Might Be Interested: Spain Startup Visa: Step-by-Step Process

Processing Time & Outcome

Third-Party Assessment Time

Portugal Startup Visa processing times can vary, but here’s a quick rundown:

• IAPMEI Review: 30 business days
• Incubator Approval: Variable (apply to multiple for efficiency)
• Residence Permit: Appointment wait time can add to the overall processing

While a streamlined process can take as little as 3 months, expect the entire process to take 2 to 6 months on average.

Visa Processing Time

The Portugal Startup Visa application can be completed in at least 3 months, assuming your business plan is finalized. However, the overall processing time can vary depending on how quickly IAPMEI and your chosen business incubator review and approve your application.

What happens After Apply

After submitting your Portugal Startup Visa application, IAPMEI will review it within 30 business days.

Here’s what follows:

• Approval:

If successful, IAPMEI will notify you, and you’ll have 40 working days to sign a contract with your chosen incubator. This finalizes your program participation and grants you a 180-day declaration valid for entering Portugal.

• Denial:

If your application is denied, IAPMEI will provide feedback outlining the reasons for rejection. This allows you to address the issues and potentially resubmit your application in the future. The appeal process typically involves working with your chosen incubator to refine your business plan and meet the program’s requirements.

Portugal Residency through Startup Visa

On the date specified in your entry visa, you’ll visit the SEF office in Portugal to submit your residence permit application. While proof of property ownership or a lease agreement isn’t mandatory at this stage, securing accommodation is advisable.

Documents Required for Residence Permit:

• Valid Passport
• Declaration of Participation in the Portugal Startup Visa Program
• 2 Passport Photos
• Bank statement demonstrating sufficient funds to cover minimum living expenses in Portugal
• Consent to a criminal record check in Portugal (replacing “Certificate of no criminal record”)

Residence Permit Details:

The initial residence permit is granted for 2 years, with the option to extend it for 3 years.

To qualify for the extension, you’ll need to demonstrate physical presence in Portugal for at least 6 consecutive months or a minimum of eight months accumulated over 1 year. This contrasts with the investor visa program, where only 1 week of residency per year is required for renewal.

Portugal Citizenship

After receiving your Startup Visa and transitioning to a residence permit, you’ll need to fulfill the minimum residency requirements for citizenship. This typically involves spending at least 6 consecutive months or 8 months total each year in Portugal.

Timeline:

• You can apply for Portuguese citizenship after legally residing in Portugal for 5 years following the initial Startup Visa grant.

Additional Requirements:

• Language Proficiency: Demonstrate basic Portuguese language skills by passing the A2 level exam administered by official entities like Instituto de Camões.
• Clean Criminal Record: Maintain a clean criminal record throughout your residency period.
• Integration: Show evidence of integration into Portuguese society. This could involve factors like owning property, having local bank accounts, or actively participating in community events.

Process:

• Once you meet the residency and other criteria, you can initiate the citizenship application process through the Portuguese authorities. This typically involves submitting documentation, attending interviews, and paying any associated fees.

Important Note:

Portugal allows dual citizenship, so you don’t have to renounce your existing citizenship to become a Portuguese citizen.

Role of Launchroad in The Seccess of Your Startup Visa

LaunchRoad is your go-to guide for starting a business abroad. We help you choose the right country, understand visa requirements, and get your startup off the ground. Our team of experts provides support, mentorship, and resources to help you succeed.

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