Is it Possible to Get Residence in Portugal by Starting a Business?

D2 Visa

The Portugal D2 Visa is a type of residence permit for entrepreneurs who want to invest in Portugal or run a self-employment business. Self-employed people and foreign investors who want to establish a company can settle in Portugal with this visa.

In practice, however, there are some critical details about this visa that are little known, and which have a significant impact on the progress of applications.

Legal Basis for the D2 Visa:

●      Lei n.º 23/2007 (Aliens Act)

●      Decreto Regulamentar n.º 84/2007

●      In particular Article 60.º-A and Article 89.º/2

Purpose of the D2 Visa:

D2 visa; It is intended for people who want to operate in Portugal by establishing a company or practicing self-employment.

These persons can:

●      Set up a new company in Portugal,

●      Become a partner in an existing Portuguese company,

●      Or they can work as a self-employed (professional liberal) in a field.

1. Self-Employment or Investment Activity is Mandatory with D2 Visa

The D2 is not intended for people who want to become dependent employees. With this visa you can only work in your own business or self-employment.

For example:

●      Licensed self-employed professionals such as lawyers, doctors, architects, consultants, etc,

●      Entrepreneurs such as cafes, restaurants, tourism companies, IT companies, etc. are eligible for D2.

2. No dependent employment permit

The residence permit obtained with a D2 visa does not entitle you to work in Portugal in a salaried position with the status of "worker".

According to Lei n.º 23/2007 - Article 83.º, the D2 residence permit can only be used for investment or self-employment

If you want to become a salaried employee of a company, you need to change your session type.

3. Experience and Network in the Business Field is a Big Advantage

When applying for a D2, your experience in the sector is as important as the nature of the business you will open in Portugal.

The following will make a significant contribution to your application:

●      You have previous professional experience in the field in which you will start a business,

●      You are a company owner or director in another country,

●      You are already operating in this sector and earning income,

●      You have an established customer portfolio or network.

The Portuguese authorities want to see the applicant's command of the sector and the sustainability of the project.

4. No Prior Lease Agreement Required

For the D2 application, there is no requirement to provide proof of prior accommodation or a lease. However, proof of accommodation (such as a lease or title deed) must be presented at the AIMA appointment once you have been approved for a visa and have entered Portugal.

5. Financial Capability and Business Plan Requirement

Application:

●      Prove that your financial resources are sufficient to sustain your business in Portugal,

●      You must also submit a detailed and realistic business plan.It strengthens your application to show at least 12 times the Portuguese minimum wage + the budget to support the investment you foresee in your business plan.

6. Tax Obligations of D2 Visa Holders in Portugal

Once you move to Portugal with a D2 visa and become a resident, you gain taxpayer status. This means that you will have some tax responsibilities both at personal and company level.

a) Personal Tax Residency (IRS)

Like every individual resident in Portugal, D2 holders are subject to personal income tax (IRS). Your annual global income must be declared regardless of its source.

●      IRS rates 14.5% to 48%, calculated on a progressively increasing system.

●      In Portugal you can also benefit from advantageous systems such as the NHR (Non-Habitual Resident) tax regime for certain types of income.

b) Company Tax (IRC)

You also need to pay company income tax (IRC) in Portugal for the company you set up or partner in with a D2 visa.

●      Overall IRC rate: 21

●      Depending on your company's annual income and type of activity, this can be up to 25-30% with local municipal taxes.

c) VAT (IVA) Liability

D2 holders who carry out business activities in Portugal are usually also VAT (IVA) taxpayers.

●      Standard VAT rate: 23%

●      Some sectors (food, health, etc.) apply reduced rates of 6% or 13%.

d) Social Security (Segurança Social)

If you are self-employed with a D2 visa or operate your own company, you must also pay mandatory social security contributions.

●      For the self-employed: You pay a monthly premium that varies depending on your income (usually the minimum limit is around €150-200 for 2024).

Note:

D2 residents and companies are obliged to make annual declarations and payments to the Portuguese tax authorities. Getting tax planning and accounting support avoids future criminal risks.

Conclusion:

Portugal D2 visa is the gateway to Portugal for entrepreneurs and self-employed people. However, just establishing a company is not enough. Your application will be evaluated based on your sectoral experience, a strong business plan and sustainability criteria. In addition, you cannot work in a salaried job after coming to Portugal with D2.