Starting a Business in Portugal - What You Should Know

If you are moving abroad to Portugal and intend on being self-employed and starting up a business of your own you should first make sure you know what to expect once you get there. Many expats looking to start up a business in Portugal find it to be a very frustrating experience due to all of the red tape that is involved in the process. It is said that bureaucracy involved in starting up a business in Portugal is worse than in Spain and France, which are notorious for their red tape.

If you are preparing you start a business in Portugal the first hurdle that you will have to overcome is the language barrier. It will be absolutely essential that you are able to speak and understand Portuguese fluently as all official documents will be in Portuguese.

If you are not a European Union national, you may find it difficult to obtain a residence permit on the premise of starting a business. European Union nationals with a residence card are free to work as self-employed in Portugal though.

You will find that Portugal is comprised of a majority of small business and self-employed people. Despite this, you will find that you will most likely not make a lot of money in a business venture in Portugal. Most business owners in Portugal put in long hours for very little monetary reward. Clearly though there is the reward of being your own boss that makes many feel it is a worthwhile venture. However, it is important to consider how little money you may make before you forge ahead with your business plan.

If you plan on having employees you should take care not to underestimate that cost. You will be paying more than just a salary. You will be responsible for 14 months of salary a year, social security contributions, 14 paid public holidays and five weeks paid vacation time.

You should also know that for some professions it is illegal to simply start a business without being given an official status in Portugal. You may need to have certain professional qualifications or a certificate. You may even have to take a written examination that is in Portuguese to be allowed to open a business of a certain profession.