Which to choose — a branch or a subsidiary in Portugal?

A branch (sucursal) is an extension of the parent company with no separate legal entity: a faster start, but the parent company is fully liable for its obligations. A subsidiary (LDA/SA) is a separate legal entity with limited liability and a more flexible tax structure.

How are a branch and a subsidiary taxed in 2026?

Both pay IRC of 19% on profit earned in Portugal. An SME subsidiary qualifies for 15% on the first €50,000; dividends to an EU parent company are paid with no withholding tax where the participation-exemption conditions are met.

A team at work in an office — registering a company branch in Portugal

PORTUGAL · COMPANY DIVISION

Your branch

in Portugal

We bring your business into the EU market — turnkey registration of your division

BOOK A CONSULTATION

We provide full support for registration and ensure compliance with all local rules — from choosing the legal structure to hiring staff in Portugal

WHAT'S INCLUDED

Full support for
opening your division

Choosing the legal structure

Expert help choosing and registering the right legal form for your business — a branch or a subsidiary

Registered address

Help arranging a business address for company registration

Corporate account

Help opening a corporate bank account in Portugal

Hiring local staff

Help sourcing local employees — if needed

Business consultation — 3 hours

A review of the legal, financial and regulatory nuances of doing business in Portugal

THE LEGAL CHOICE · 2026

A branch or a
subsidiary?

This is the key decision before entering the Portuguese market. Both structures pay 19% corporate tax (2026) on income earned in Portugal — the difference is in liability, flexibility and reporting

SUCURSAL

Branch

Not a separate legal entity — a permanent establishment of the parent company

The parent company is fully liable for the branch's obligations

No share capital — faster and cheaper registration

Profit transfers to head office — with no dividend tax

Well suited to market testing and project contracts

SUBSIDIÁRIA · LDA / SA

Subsidiary

A separate Portuguese legal entity with its own articles and NIPC

Liability is limited to its capital — risk doesn't pass to the group

A reduced 15% rate on the first €50,000 of profit for SMEs