Complete Guide to the Startup Portugal Program for Global Entrepreneurs

Portugal has recently become a hub for digital nomads from around the world. The country has a digital and business-friendly environment, offering excellent opportunities for entrepreneurs to launch a startup or business. If you want to start a company in Portugal or move your business to the country, read on to learn more about the Portugal Startup Visa, also known as the D2 Visa, for global entrepreneurs.¹

What is the Portugal Startup Visa?

The Portuguese Government has introduced the Portugal Startup Visa Program, which lets global entrepreneurs without permanent residence in the Schengen Area develop entrepreneurial and innovative business projects in Portugal. This program paves the way for granting a residence visa and a residence permit in the country.²

This visa program applies to existing or new entrepreneurs who intend to kickstart their business enterprises in Portugal. The visa aims to attract innovative business talent and investment to benefit the Portuguese economy and generate employment for the local population. Applying for this visa requires registering for the program online. You can apply for a visa from authorized organizations; for example, Indian passport holders can apply through VFS Global.

If you are already living in Portugal and looking to set up a more traditional business, check out our guide to registering a company in Portugal.

Benefits of the Portugal Startup Visa for Entrepreneurs

As a global entrepreneur, there are several benefits of the Portugal Startup Visa:³

• Access to the European market - The most significant benefit of the Portugal Startup Visa is that you can set up a business entity in Portugal, allowing you convenient access to the European market. Portugal is one of the most attractive business destinations because of its business-friendly regulations.
• Path to residency - The Portuguese Startup Visa has a validity period of four months and allows two entries into the country. Once you enter, you can apply for a Portuguese residence permit and work towards a long-term permit. The Ministry of Foreign Affairs and Portuguese Immigration and Borders Services will be issuing you any future visas and permits once you reside in the country.
• Hosting of business projects - Global entrepreneurs can host business projects through a group network of certified incubators by IAPMEI, I.P.
• Include your dependents - The Portugal Startup Visa allows you to include your dependents, including your parents, parents-in-law, spouses, and children under 18 years old. Unmarried dependent children over 18 years old are also allowed if they study full-time in Portugal.
• Qualify for permanent residency or citizenship - You qualify for a permanent Portuguese residency or citizenship after residing in the country for five years.

Requirements for Portugal Startup Visa

Here are the requirements to be eligible for a Portuguese Startup Visa:⁴

• Desire to start an innovative business or startup.
• The project or company should focus on innovative products that deal with technology, innovation, and knowledge.
• Create qualified employment for the local Portuguese population.
• Show evidence of potential to meet a turnover or develop assets worth over €325.000 EUR per year after the incubation period of five years.

With these requirements, the Portugal Startup Visa aims to encourage global entrepreneurs to invest in innovative projects in Portugal, help contribute to the Portuguese economy, and generate employment opportunities for the local Portuguese population.

The eligibility criteria for applying for a Portugal Startup Visa are:⁵

• Be a foreign entrepreneur from a non-EU/EEA nation.
• Have the financial capability of having at least €5146.80 EUR to sustain your stay in Portugal for a year.
• Do not have any debts to the Tax Authority or Social Security.
• Have sufficient funds to rent or purchase a residence in Portugal.
• Be over 18 years of age and have a clean criminal record.

Here are the Portugal Startup Visa costs.⁶

In addition, you might also have costs of approximately €400 EUR for health insurance, legal services, and visiting the Portugal immigration service.

Application process for Portugal Startup Visa

The Portugal Startup Visa has a two-phase application structure. First, you have to show interest from one of the incubators. You can only apply for the visa once you have received incubator approval.⁷

Registration and Demonstration of Interest to the Incubators

This phase requires showing that there is interest in one of Portugal’s incubators to develop your innovative project in Portugal and providing the following documents:

• Letter of Motivation that demonstrates an interest in setting up a new and innovative business project in Portugal.
• Copy of your passport showing evidence that you reside in a non-EU/EEA country and a residence permit, if applicable.
• If you have one, you must provide your social security or tax identification number in Portugal.
• You can submit a declaration that you will honor the commitment if you do not have a social security or tax identification number in Portugal.
• Criminal record certificate issued by the respective law enforcement authority in your country or place of residence.
• Bank statements that show the required financial support.
• Your Curriculum Vitae (CV).

You must submit the letter of motivation to at least one incubator. The letter must include:

• The innovative nature of the project and why it is unique.
• The growth potential.
• The idea’s ability to scale.
• The prospects of setting up the business in Portugal

You must get a positive response from at least one incubator before you can move ahead to apply for the Startup Visa.

Submission of documents to IAPMEI

Once you have gotten a positive response from an incubator, you can apply to the online platform for visa evaluation.

IAPMEI provides a decision within 30 days after submitting the application and will let you know online of an answer. They may ask you for additional information or documents, which you must provide within three working days after receiving the request.

If you are approved, you can move forward with the contract with the incubator. The incubation contract can take around 40 working days to formalize. IAPMEI issues the Declaration of Acceptance to Startup Visa, which is valid for 180 days. You can then move forward with applying for a D2 residence visa.

The application form must be completed and signed, and you have to provide the following documents:⁸

• Valid passport
• Proof of legal residence
• Two passport-size photographs
• Personal cover letter
• Proof of financial resources
• Travel Insurance coverage of a minimum of €30,000 EUR per person
• Transport document or flight reservation ticket
• A criminal record certificate
• Declaration of Acceptance to Startup Visa

Depending on your nationality, you may also need to book an appointment with the visa application center for Portugal in your country and pay the requisite visa fees. This may require biometric registration, confirmation of your documents, and an interview. Check with the Portuguese consulate or embassy near you to double-check the process.

The standard processing time for the D2 residence visa is 30 days from the receipt of the application and documents at the Consular Section of the Portuguese Embassy. The D2 residence visa is valid for 120 days, within which you can apply for a residence permit with the competent Portuguese authorities.

Moving to Portugal from abroad

Getting a visa is only one step in the moving process. Here are additional factors to consider when moving abroad:

• Update bank and credit card accounts: Once you’ve decided to move to Portugal, you may need to notify your bank and credit card companies about your change in residence. Remember how to keep paying for recurring bills that you may have at home or ways to keep your bank accounts open while you are gone. A D2 visa can help you open a bank account in Portugal.
• Staying connected to family and friends: While you develop your business in Portugal, you can keep in touch with your loved ones at home through WhatsApp or social media channels like Facebook or Instagram. Try to get a local number in Portugal to avoid high roaming charges.
• Cultural changes: The Portuguese have a vibrant culture. While it can take time to adjust to their culture, keep yourself open to learning about how the Portuguese live and their history while still remembering your roots.
• Accommodation and logistics: See if you can rent an apartment or find a place to live in Portugal online before you leave. Having a local address can make it easier if you want to ship any of your belongings.
• Healthcare: Health insurance is mandatory when applying for the D2 Residence Visa. You must renew the insurance policy regularly and remain insured for any medical emergency. Healthcare costs can be high in Portugal.

Banking in Portugal

You’ll need a bank account in Portugal for your business and personal needs. A separate business account can help in tax and accounting compliance and keeping track of your business income and expenses. For more information on opening a personal bank account, check out our complete guide to opening a bank account in Portugal.

When looking for a bank, keep in mind fees- especially if you have a distributed team, suppliers or vendors globally. International transaction costs can be expensive with banks, in addition to taking time to be deposited. Want an easy and fast way to send money globally? Take a look at Wise.

Meet Wise: International Account for Global Entrepreneurs

Wise is the fast, easy and simple way to manage money globally. With an easy-to-use app if you’re sending money home or a multi currency account if you’re travelling, Wise has you covered. And if you are a modern business, look no further than the Wise Business account to streamline all your international transactions.

Not fluent in Portuguese yet? No problem- Wise has English-speaking customer service, so you can ask questions or get support for any account needs.

Wise Account for Portuguese Residents

If you live in Portugal, Wise can help you send money back home to family, put down a deposit on your next vacation or send a gift to a friend. International transfers comes with one upfront transaction fee, and you always get the mid-market rate on currency exchange.

Frequent travellers will love the Wise multi-currency account. It's one account where you can hold, send and spend up in different currencies. Easily convert currencies at the mid-market exchange rate so your money goes where you go. And if you opt for a linked debit card, you can swipe like a local wherever you are in the world.

So skip expensive international transaction fees and exchange rate markups, and join Wise today to see how easy it is to transfer money overseas.

Get Started with Wise account for Portugal Residents 🚀

Wise Business Account for Portugal Startups

The Wise Business account is ideal for businesses with clients, suppliers, vendors or teams worldwide. You can pay invoices directly to local bank accounts at the real mid-market exchange rate. No extra bank fees or markups with Wise.

With the Wise Business account, clients can pay you in their preferred currency with local bank details multiple foreign currencies. The account integrates seamlessly with Quickbook and other accounting software, making it simple to track transactions. Over 300,000 businesses use Wise Business every quarter, so join today and see how simple international transactions can be.