What are the criteria for startup status in Portugal?

Under Law 21/2023: the company is under 10 years old, has up to 250 employees, turnover of up to €50M, headquarters in Portugal, and an innovative model or high growth potential. Startup Portugal confirms the status via an online procedure.

What does startup certification provide in 2026?

Favorable taxation of stock options for the team, access to the IFICI regime (20% IRS) for employees, reduced IRC rates for SMEs, and access to Startup Portugal grants and programs. The status also strengthens the Startup Visa case for founders.

PORTUGAL · STARTUP

Startup

certification

Significant tax benefits for founders and employees

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Certified startups in Portugal receive significant tax benefits for founders and employees, making the country an attractive location for entrepreneurs

FOR FOUNDERS AND EMPLOYEES

Personal
tax benefits

20%

Flat rate

A flat 20% rate on Portuguese income instead of the progressive scale

Foreign income

An exemption from tax on foreign income — provided it doesn't originate in a blacklisted country

Not the only source

The startup doesn't have to be your only source of income — a minimum salary is enough to apply the benefits to income from all sources

FOR THE COMPANY

Corporate
tax benefits

The standard corporate tax rate on mainland Portugal is 21%, but certified startups can pay just 12.5%

STANDARD

21%

CERTIFIED STARTUP

12.5%

To qualify for the reduced rate, a startup must meet one of the following conditions

Be recognized as an innovative company with high growth potential

Complete at least one round of venture financing

Receive investment from Banco Português de Fomento, SA or the funds it manages

CRITERIA · LAW 21/2023

Who can obtain
startup status

Startup Portugal confirms the status via an online procedure. We prepare the application, the innovation rationale and support you through to the certificate

The company has been operating for less than 10 years and was not formed by spinning off from a large company

Up to 250 employees and annual turnover of up to €50M

Headquarters or a permanent establishment in Portugal (or at least 25 employees in the country)

Innovation or fast-growth potential — via ANI recognition, raising venture investment, or a well-founded business model

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