Entrepreneurs seeking access to the European market face one question: where can I launch quickly, legally, and affordably?
Among all options, Portugal, especially the Autonomous Region of Madeira, offers the easiest startup visa in Europe. Portugal’s Startup Visa (D2 Visa) provides a straightforward path to residence for innovative founders and self-employed professionals. It requires no fixed investment threshold and leads to permanent residence and EU citizenship within five years.
It is a genuine gateway to Europe for non-EU entrepreneurs ready to expand globally.
1. What Makes Portugal’s Startup Visa Unique
Portugal designed the D2 Startup Visa to attract innovators who bring value and qualified employment to the economy. Unlike many European programs, it does not require purchasing real estate or committing a fixed capital investment.
Applicants must demonstrate the financial capacity to support themselves for one year and present a viable business plan with growth potential. This accessibility and Portugal’s lifestyle make it the easiest startup visa in Europe.
2. Key Benefits for Entrepreneurs
Fast residency approval: Applications are typically processed within three to four months.
- Low financial entry: Minimum proof of funds around €10,640 for the principal applicant, plus modest additional amounts for dependents.
- Family reunification: Spouse, children, and dependent parents can join the applicant in Portugal.
- Visa-free Schengen travel: Residence holders can travel across 27 European countries for up to 90 days every 180 days.
- Path to citizenship: After five years of legal residence, founders can apply for Portuguese nationality without renouncing prior citizenships.
These benefits give entrepreneurs operational freedom and long-term settlement options, a rare combination within the EU.
3. Madeira: The Best Location for Startup Founders
Although the visa applies nationwide, Madeira Island offers specific advantages that make it the top choice for international entrepreneurs.
Madeira combines a business-friendly environment, lower regional personal income tax rates, and competitive corporate taxation with full EU compliance. The island hosts an emerging startup ecosystem supported by StartUp Madeira, modern digital infrastructure, and direct air links to major European cities.
Madeira’s cost of living and labour are lower than in Lisbon, while the quality of life remains exceptional. This combination positions the island as a strategic Atlantic base for startups serving EU and global markets.
4. Who Can Apply for the Portugal Startup Visa
The D2 Visa targets several profiles:
- Founders are establishing a new company in Portugal.
- Entrepreneurs relocating an existing business from abroad.
- Independent professionals and freelancers offering innovative services.
Applicants must be over 18, hold valid health insurance, and have a clean criminal record. Crucially, they must demonstrate that their venture will contribute to Portugal’s economy through innovation, technology, or qualified employment.
5. Step-by-Step Application Process
Step 1 – Prepare Your Business Plan
Applicants must present a credible business plan showing growth potential, innovation, and the capacity to create local jobs. The plan must align with Portugal’s economic priorities, such as technology, sustainability, or digital services.
Step 2 – Obtain a Portuguese Tax Number (NIF)
The NIF is essential for any economic activity in Portugal. It can be obtained remotely through a local tax representative.
Step 3 – Open a Portuguese Bank Account
Applicants must open a business bank account and deposit sufficient funds to cover one year of living expenses.
Step 4 – Incorporate a Portuguese Company
Entrepreneurs establish a limited company (LDA) or a branch in Portugal, supported by a local accountant. This entity becomes the operational base for the startup.
Step 5 – Partner with a Certified Business Incubator
Approval by a Portuguese business incubator is mandatory. The incubator assesses the business plan and confirms its potential contribution to the local economy. In Madeira, StartUp Madeira frequently acts as a strategic partner for such projects.
Step 6 – Apply Through IAPMEI (Portuguese Agency for Competitiveness and Innovation)
Applications, business plans, and incubator endorsements are submitted via IAPMEI’s online platform. The agency typically reviews each case within 30 days.
Step 7 – Obtain the Visa and Residence Permit
Once approved, applicants apply for the D2 Visa at the Portuguese consulate in their home country or upon arrival in Portugal. The first residence permit is valid for two years and renewable for three more.
After five years of continuous residence, entrepreneurs may apply for permanent residence or Portuguese citizenship.
6. Cost Overview
The D2 Startup Visa is significantly more affordable than investor visas elsewhere in Europe.
Applicants must show:
- €10,640 for the principal applicant,
- €5,320 for a spouse, and
- €3,192 for each dependent child.
Government fees are modest: about €90 for the visa and €85 for the residence permit. Health insurance (typically €400–€1,000 per year) and legal or accounting support should also be budgeted.
In contrast, investment visas in other EU countries often require capital commitments starting at €250,000 or higher.
7. Legal and Accounting Obligations
Once established in Portugal, your company must comply with local accounting, taxation, and social-security rules.
Entrepreneurs must:
- Maintain an accountant registered in Portugal;
- Submit annual tax and VAT returns;
- Contribute to social security for any local employees; and
- Use certified invoicing software approved by the Portuguese Tax Authority.
Working with independent legal and accounting professionals, separate from incubators, ensures transparency and full regulatory compliance.
8. Comparing the D2 Startup Visa to Other EU Programs
Portugal’s program stands out for simplicity and cost-efficiency.
Unlike France’s or Germany’s startup visas, there is no fixed investment threshold or high administrative burden.
The combination of:
- low entry costs,
- a five-year path to citizenship, and
- residence in a politically stable, English-friendly EU jurisdiction
- makes Portugal’s D2 Visa objectively the easiest startup visa in Europe.
9. Why Work with Local Experts in Madeira
Setting up a company abroad involves navigating tax, immigration, and compliance frameworks simultaneously.
In Madeira, specialised advisory firms such as Madeira Corporate Services (MCS) streamline the process from start to finish:
- Obtaining your NIF and opening a bank account;
- Incorporating your Portuguese company;
- Coordinating with approved incubators; and
- Managing tax, accounting, and residence formalities.
With over 30 years of experience assisting international clients, MCS ensures that your relocation and startup are compliant and strategically structured for long-term growth.
Please feel free to reach out if you would like professional assistance with the Portugal Startup Visa, company formation, or tax compliance in Madeira.
The information contained in this article is provided for general informational and marketing purposes only and does not constitute legal, tax, or immigration advice.
While every effort has been made to ensure accuracy as of the publication date, laws and administrative practices in Portugal, including those governing visas, taxation, and corporate compliance, are subject to change without notice. Readers should not act or rely upon this material without obtaining specific professional advice tailored to their personal circumstances.
Madeira Corporate Services, Lda. (MCS) accepts no responsibility or liability for any loss or damage that may arise directly or indirectly from reliance on the information contained herein.
Please contact our qualified professionals for formal legal or tax advice regarding residence, incorporation, or compliance in Portugal or Madeira.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
