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Business and corporate law: Portugal and Luxembourg compared for founders

A Luxembourg founder knows the SARL: 12 000 € of capital, a notary, a business permit, accounts at the RCS. Portugal's equivalent starts at 1 € in a morning, then asks for a certified accountant, monthly invoicing files and a director who answers for unpaid tax. Forms, governance, filings and tax, side by side.

Updated Facts checked against official sources (listed at the end)


Lawyer working on documents at a desk

Forms and formation

LuxembourgPortugal
Small limited companySARL: capital at least 12 000 €, 2 to 100 shareholders (one for a SARL unipersonnelle), formed before a notary, articles filed with the RCSLda (sociedade por quotas): capital freely fixed, each quota at least 1 €, one or more partners (unipessoal for one), formed at Empresa na Hora in a single session for 360 €, or before a notary or online
Simplified start-upSARL-S: capital from 1 € to 12 000 €, natural persons only, private deed, one such company per person; must convert when capital passes 12 000 €no separate form needed — the Lda already starts from 1 €
Public companySA: capital at least 30 000 €, notarial deedSA: capital at least 50 000 €
Licence to tradea business permit (autorisation d’établissement) from the Ministry of the Economy before any regular commercial, craft or listed liberal activityno general business permit; licences only for regulated sectors (tourism lodging, construction, food, transport)
Managersone or more gérants, of any nationality, need not be shareholdersone or more gerentes, of any nationality and residence

The Luxembourg SARL is a notarial, licensed vehicle designed for a regulated economy; the Portuguese Lda is an administrative one. A Luxembourg entrepreneur used to a week of notary and ministry can have a Portuguese company with a tax number, a social-security registration and a bank-ready certificate in a morning — and then meets the accounting regime below.

  • 12 000 € vs 1 € minimum capital; notary vs Empresa na Hora (360 €)
  • Business permit required in Luxembourg for most activities; none in Portugal outside regulated sectors
  • Accounts filed within 7 months with the RCS; Portuguese Modelo 22 by 31 May and IES by 15 July
  • 23,87 % vs 19 % corporate tax in 2026 (Luxembourg City rate; Portugal 15 % on the first 50 000 € for SMEs)

Governance and oversight

A SARL is run by its managers within the objects; shareholders decide the accounts, distributions and changes to the articles; above 60 shareholders an annual meeting and internal auditors are compulsory; a statutory audit by a réviseur d’entreprises agréé is required once two of three thresholds are exceeded for two years — balance sheet 4,4 million €, turnover 8,8 million €, 50 employees. An Lda is run by its gerentes, with the partners deciding in general meeting; a statutory auditor (revisor oficial de contas) is required only when the company exceeds two of three thresholds for two consecutive years — balance sheet 1,5 million €, sales 3 million €, 50 employees — unless it has a supervisory board (Companies Code, art. 262.º).

Accounts, tax filings, payroll

LuxembourgPortugal
Annual accountsfiled with the RCS within 7 months of year end (6 months to approve, 1 month to file)approved by the partners within 3 months of year end (CSC art. 65.º); IES with the accounts filed by 15 July; accounts kept under the SNC standard with no backlog beyond 90 days
Corporate tax returnannual return to the Administration des contributions directesModelo 22 by 31 May; three payments on account in July, September and December
VAT returnsannual below 112 000 € of turnover, quarterly to 620 000 €, monthly abovequarterly below 650 000 €, monthly above; SAF-T invoicing file every month; certified invoicing software
Payrollemployer and employee contributions to the CCSS23,75 % employer and 11 % employee to Social Security, monthly
Beneficial ownersRBE — Register of Beneficial Owners, since 1 March 2019RCBE (Lei n.º 89/2017)
Directors’ liabilitycivil liability for management faultssubsidiary liability for the company’s unpaid tax and social-security debts (LGT art. 24.º), plus civil liability

Tax on the company and the owner

Luxembourg’s combined corporate rate — 16 % income tax, the 7 % employment-fund surcharge and the municipal business tax — is 23,87 % in Luxembourg City from 2025; Portugal’s IRC is 19 % in 2026, falling to 17 % in 2028, with 15 % on the first 50 000 € of an SME’s profit, a municipal surcharge of up to 1,5 % and a state surcharge above 1,5 million €. Dividends paid by a Portuguese company to a Luxembourg parent holding 10 % for a year are exempt from Portuguese withholding (CIRC art. 14.º n.º 3, parent-subsidiary regime); to a Luxembourg individual the treaty allows 15 %. Dividends to a Portuguese resident individual owner are taxed at 28 %. Cross-border profits follow the 1999 convention: a Luxembourg company is taxed in Portugal only on a permanent establishment here, and a Luxembourg manager who directs the company from Portugal can create one — or move the company’s tax residence — which is the first question we ask a founder who relocates.

Steps for a Luxembourg founder

Vehicle

New Lda, Portuguese branch of the SARL, or SARL-owned Lda: liability, clients and the dividend route decide.

Numbers first

NIF for each partner (by proxy if abroad), then the NIPC at Empresa na Hora with apostilled SARL documents for a corporate partner.

Accountant and software

Certified accountant appointed at incorporation; certified invoicing and SAF-T before the first sale; Social Security registration of the gerente.

Luxembourg side kept clean

Business permit updated for a change of manager's residence; RBE and RCS filings; the SARL's own substance if it stays.

We form and run Portuguese companies for Luxembourg clients — Empresa na Hora, accounting, IVA, payroll, Modelo 22 and IES — and coordinate with your fiduciaire in Luxembourg. Ask for a formation quote.

Questions

Does my SARL need a business permit to sell to Portuguese customers?

Not a Portuguese one, and no Portuguese corporate tax, as long as it works from Luxembourg without a permanent establishment here; a Portuguese office, warehouse or agent changes that, and so does a manager who runs it from Portugal.

Is an Lda cheaper to run than a SARL?

Formation is far cheaper (360 € against notary and RCS costs). Running costs are comparable: a certified accountant is compulsory in Portugal and files monthly SAF-T and periodic VAT, whereas a small SARL files VAT annually below 112 000 €.

Can the company's accounts be in French?

The Portuguese accounts and filings are in Portuguese and in euros; supporting documents in French are accepted. The RCS accepts French, German or Luxembourgish.

Sources and official references

  1. Guichet.lu — SARL: capital 12 000 €, 2–100 shareholders (single-member SARL possible), notarial deed, RCS filing, audit thresholds (4,4 M € / 8,8 M € / 50), accounts filed within 7 months, VAT return periodicity (112 000 € / 620 000 €) — checked 19.9.2026
  2. Guichet.lu — SARL-S: capital 1 € to 12 000 €, natural persons only, private deed, one per person, conversion above 12 000 € — checked 19.9.2026
  3. Guichet.lu — SA: capital 30 000 €, notarial deed — checked 19.9.2026
  4. Guichet.lu — business permit (autorisation d'établissement) required for regular commercial, craft and listed liberal activities — checked 19.9.2026
  5. Guichet.lu — Register of Beneficial Owners (RBE), since 1 March 2019 — checked 19.9.2026
  6. Administration des contributions directes — overall corporate tax burden: IRC 16 % from 2025, 7 % employment-fund surcharge, municipal business tax; 23,87 % in Luxembourg City — checked 19.9.2026
  7. Código das Sociedades Comerciais — artigo 65.º n.º 5 (accounts approved within three months), 201.º and 219.º (Lda capital, 1 € quota), 262.º (statutory auditor thresholds), 276.º (SA 50 000 €) — checked 19.9.2026
  8. Justiça.gov.pt — Empresa na Hora: 360 € — checked 19.9.2026
  9. Lei n.º 89/2017 — Registo Central do Beneficiário Efetivo — checked 19.9.2026
  10. Código do IRC — artigo 123.º (organised accounts, 90-day backlog limit), 104.º (payments on account), 120.º–121.º (Modelo 22 by 31 May, IES by 15 July) — checked 19.9.2026
  11. Código do IVA, artigo 41.º — monthly above 650 000 €, quarterly below — checked 19.9.2026
  12. Lei n.º 110/2009 (Código Contributivo), artigo 53.º — 23,75 % / 11 % — checked 19.9.2026
  13. Lei Geral Tributária, artigo 24.º — subsidiary liability of managers for tax debts — checked 19.9.2026
  14. Lei n.º 64/2025 — IRC 19 % in 2026, 17 % from 2028, 15 % on the first 50 000 € for SMEs; Código do IRC artigo 14.º n.º 3 — dividends to an EU parent holding 10 % for a year exempt — checked 19.9.2026
  15. Convenção Portugal–Luxemburgo (1999) — art. 5 permanent establishment, art. 7 business profits, art. 10 dividends 15 % — checked 19.9.2026
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