By James Muscat – CEO and founder of moviinn®
Portugal has entered a new chapter. The country’s macroeconomic story has caught up with what founders on the ground have felt for years. There is stable growth, a deepening talent pool, and an innovation infrastructure that supports product building and scale.
In December 2025, The Economist named Portugal the economy of the year. This signalled to global investors that the country delivered growth with low inflation and solid employment while remaining open to innovation and international talent. The recognition has become a talking point with founders and investors who are comparing European hubs for their next base.
At the same time Portugal modernised its immigration and nationality frameworks. Some proposals were softened or reworked during the legislative process and others were approved with an emphasis on integration, compliance, and clarity.
For founders the practical takeaway is clear. It remains very possible to build and scale a company in Portugal. The main startup relevant pathways continue to operate. The ecosystem continues to mature across Lisbon, Porto, Braga, the Algarve, and Madeira with national and local organisations providing concrete help to startups.
This article summarises what changed, how to choose the right pathway now, where to plug into the ecosystem, and why the timing is attractive for both new arrivals and founders already operating in the country.
The headline changes in immigration and why they matter to founders
Portugal completed a structural change in immigration administration in late 2023. AIMA, the Agency for Integration, Migration and Asylum, took over the administrative side of immigration from the former borders service.
For applicants and residents this means a single public face for immigration services and a programme to reduce backlogs and digitise processes.
AIMA has issued notices that kept documents valid during the transition and explained how renewals proceed. This has been especially relevant to founders and employees who were waiting for decisions on files. While the transition period created well known delays across 2024 and part of 2025, the system is now gradually stabilising as new procedures and digital processes are implemented.
During 2024 and 2025, the government and parliament worked through a broad immigration bill. Early contours placed more emphasis on real economic activity and on higher documentation standards for both new applications and renewals.
The effect for founders is straightforward. Expect a clearer rule set and a stronger expectation that residence matches genuine work, investment, and integration in Portugal. This is a healthy adjustment for a maturing ecosystem and aligns Portugal with other European innovation hubs.
The four startup relevant pathways that still work
Portugal continues to offer four frameworks that directly serve founders and tech operators. Each supports a different profile and stage.
Startup Visa
This is the flagship programme for innovative founders who want to create or relocate a startup to Portugal. It is managed with IAPMEI and Startup Portugal. It welcomes non-European Union entrepreneurs who can demonstrate innovation potential, scalability, and job creation.
The programme grants a recognised certification for the startup project, which facilitates the residence process for founders and helps companies attract and bring qualified international professionals to Portugal more easily. Benefits include a structured evaluation, a recognised label for the business plan, and an aligned residency route.
D2 Entrepreneur Visa
The D2 is a flexible option for founders who will incorporate in Portugal or invest in an existing Portuguese company. It suits solo founders and small teams and rewards a credible plan, market validation steps, and early traction.
Many early stage companies begin with D2 while they work toward the metrics required by acceleration programmes or institutional funding.
D8 Digital Nomad Visa
This route is designed for remote professionals and founders who work for companies or clients based outside Portugal. Applicants must demonstrate that their professional activity is performed remotely for an entity located abroad, typically through an employment contract or services agreement that confirms remote work.
In addition, applicants must show a minimum monthly income equivalent to four times the Portuguese minimum wage, currently €3,680.00, usually supported by recent payslips, invoices, or bank statements.
For founders building early stage products or working with distributed teams, the D8 can be a practical way to base themselves in Portugal while maintaining international clients or employers. It also allows for a later transition to another residence pathway once a Portuguese company is established and begins hiring locally.
Tech Visa
This is an accreditation programme that allows Portuguese companies to recruit highly qualified talent from outside the Schengen Area through a fast track. If you already have a company in Portugal, achieving Tech Visa accreditation can improve your hiring speed for global candidates.
Across all paths founders should expect more rigorous documentation. Authorities will ask for proof of activity in Portugal and clean compliance at renewal time. This rewards real builders and gives investors confidence.
IFICI: The tax incentive that changes the hiring conversation for certified startups
Portugal introduced the Tax Incentive for Scientific Research and Innovation known as IFICI. It is a personal income tax regime that aims to attract qualified talent to drive innovation and research in Portugal.
The regime became effective in 2024 and policy instruments were regulated at the end of 2024. Eligible new tax residents who meet the conditions can access a 20 percent flat rate on qualifying employment or self employment income derived from activities performed in Portugal for up to ten years.
In addition, IFICI may provide exemptions on certain categories of foreign sourced income, such as dividends, interest, rental income, and capital gains, subject to the applicable tax treaty rules and Portugal’s exemption with progression framework.
For startups the decisive point is the connection between IFICI and the official Startup Portugal certification. Professionals who have been tax residents outside the country for at least five years and come to work in certified startups can benefit from a 20 percent personal income tax rate for ten years, subject to the general IFICI conditions and registration.
In other words, once your company is certified as a startup under the national framework, employees and founders who qualify as new tax residents may access IFICI. This is a powerful lever for recruiting scarce profiles in engineering, product, deep tech, and data science.
Founders should also be aware that the government and its agencies have published operational guidance. IAPMEI has summarised the professions considered qualified jobs and the economic activities considered relevant for the national economy.
Registration requires specific electronic forms on the Tax Authority portal. Timely registration matters because the benefit window is long but the eligibility period begins with the start of your tax residency.
IFICI sits alongside corporate side instruments such as SIFIDE, Portugal’s tax incentive for corporate research and development (R&D) expenses. Together they create a policy stack that rewards both talent attraction and sustained investment in innovation. Further information on SIFIDE is available on the Portuguese National Agency for Innovation (ANI).
The ecosystem is national: Hubs and programmes that accelerate results
Portugal is no longer a one city story. The network is distributed and each city has developed a focus and a set of instruments that add depth.
Lisbon. The capital concentrates investment, customers, and international exposure. Unicorn Factory Lisboa has become a city backed platform for founders from start to scale. Founders who join Lisbon programmes gain access to later stage peers, mentors with operating experience, and curated investor networks. The annual Web Summit adds density of capital, media, and partnerships.
Porto. The second city is a credible base for technical teams and research partnerships. Universities and science parks provide talent pipelines. InvestPorto acts as the city’s investment promotion agency and supports companies with location, introductions, and project installation. This is practical help that reduces time to first operations.
Braga and the North. Startup Braga combines pre-acceleration, acceleration, and incubation, with strong access to mentors and corporate partnerships. It is effective for healthtech, industrial and deep tech, and it offers cost advantages and a cohesive community.
Algarve. The region offers a distinctive proposition that blends quality of life with a serious innovation agenda. Algarve Tech Hub and the association Algarve Evolution connect entrepreneurs, talent, and partners, and the Algarve Tech Hub Summit has been drawing founders and investors while highlighting sector themes such as tourism technology, agrifood, health, and energy.
Madeira. Startup Madeira has worked with entrepreneurs since the late nineties and gained new visibility through digital economy programmes. It offers ideation, acceleration, and both physical and virtual incubation. The Digital Nomads Madeira initiative continues to attract remote professionals and has strengthened the island’s entrepreneurial community.
National programmes. Startup Portugal coordinates nationally significant initiatives. It recognises Startup and Scale up status, operates the Startup Visa with IAPMEI, supports Tech Visa in partnership with IAPMEI, and curates programmes that include international missions and vouchers that reduce the cost of innovation and hiring. The official site provides criteria, timelines, and forms which helps founders prepare clean applications with less friction.
Why the timing is attractive for founders
Portugal’s recent “Economy of the Year” distinction has significantly raised its profile among global investors and corporate partners. It signals that the country is delivering sustainable growth without the macroeconomic imbalances that concern long-term capital allocators.
For founders, this translates into a stronger ability to attract international talent, as professionals are more willing to relocate to a country associated with stability and predictability.
European customers, in turn, increasingly view Portugal-based startups as reliable counterparties. Credit rating upgrades in 2025 reinforced this perception and are contributing to a lower cost of capital across the economy.
Just as important, Portugal has already proven its ability to produce globally relevant companies. In recent years, the country has generated multiple unicorns, creating a visible track record that reassures first-time founders and international investors alike.
This success has catalyzed a new generation of operators-turned-investors. Founder communities in cities such as Porto are particularly active, and figures like Virgílio Bento, founder of Sword Health, through initiatives such as EX Capital, are now recycling experience and capital back into the ecosystem as angel investors and early backers.
This dynamic shortens learning curves and improves access to smart capital at the earliest stages.
Portugal’s position within the European Union, the euro area, and the Schengen Area further simplifies operations once a company lands. Business travel is frictionless, regulatory frameworks are familiar to global investors, and sales teams can cover much of the continent from a single base.
At the same time, the cost structure remains competitive by Western European standards, extending runway for pre-seed and seed-stage teams.
Lifestyle advantages, climate, safety, healthcare, and culture, are not soft factors in this context. They reduce employee attrition, help close senior hires, and improve founder resilience during long and demanding build cycles.
Finally, Portugal’s visibility on the global startup calendar continues to expand. Web Summit remains the flagship event in Lisbon, while regional showcases in the Algarve and the North create multiple moments of international attention throughout the year.
For well-prepared founders, these events are not just branding opportunities but concrete gateways to pilots, partnerships, and early commercial traction.
Choosing the right pathway now: A founder’s checklist
Decide on the legal route first.
If you are building an innovative and scalable venture and you plan to work with a recognised incubator or accelerator, consider the Startup Visa. If an accelerator or incubator is not in the cards and you intend to launch your company independently with a credible business plan and initial resources, consider the D2 Entrepreneur Visa.
If you will operate remotely for a period while you develop product and validate markets, consider the D8 and plan a later transition once the Portuguese entity is established and begins hiring locally. If you plan to recruit non European Union specialists into your already incorporated Portuguese entity, evaluate Tech Visa accreditation.
Prepare for stronger documentation.
Authorities expect quality files. Present a clear business plan, evidence of market research and validation, initial customer conversations or pilots, proof of funds, and a clean compliance record.
For renewals maintain Portuguese tax filings, social security where applicable, and updated company documentation that shows ongoing operations.
Open local relationships early.
Connect with Startup Portugal for status recognition and programme guidance. Speak to InvestPorto if you are considering Porto. Engage with platforms such as Unicorn Factory Lisboa, Startup Lisboa, Startup Braga, Algarve Tech Hub, and Startup Madeira to fit into relevant programmes and networks. These relationships compress time to traction.
Use IFICI strategically in recruiting.
When you certify your company as a startup and you recruit new residents who meet the criteria, IFICI can provide a 20 percent personal income tax rate on eligible income for up to ten years.
Build this into your offer design and into your employer branding. Document eligibility early and register in the Tax Authority portal within the required timeframes.
For founders already based in Portugal
If you are already here on a D2, D8, or Startup Visa, run a quick status audit. Confirm that corporate filings, tax returns, and social security items are current. Confirm that your lease, registered address, and shareholder registry are updated. Confirm that work contracts meet Portuguese standards.
If you plan to hire outside the European Union, consider Tech Visa accreditation which can speed recruitment and shows commitment to local operations. Keep copies of investor term sheets, grant agreements, or programme acceptances since they help demonstrate traction at renewal.
Do not hesitate to join local programmes a second time at a more advanced level. Unicorn Factory Lisboa publishes cohort level outcomes for scaleups and has a mentor bench with C level experience in global companies.
Founders who have already raised a seed round often discover that a Lisbon based scale programme aligns them with the investor and corporate networks they now need.
Key takeaways for start-uppers
- Portugal has momentum and international credibility after being recognised as economy of the year. This matters to investors, talent, and customers.
- The immigration framework has been modernised. AIMA is the single administrative face of the process and has been digitising and communicating renewals and validity.
- Startup Visa, D2, D8, and Tech Visa remain the primary founder relevant routes. Prepare strong files and show real economic engagement.
- IFICI makes Portugal more competitive in attracting talent. The regime grants a 20 percent personal income tax rate for up to ten years for eligible new residents and it covers posts in certified startups when conditions are met. In addition, IFICI grants an exemption from Portuguese personal income tax on most categories of foreign or globally sourced income, including employment, self employment, rental, interest, dividends, and capital gains, subject to the standard exceptions and Portugal’s exemption with progression rules. Plan eligibility from the first recruitment.
- The ecosystem is national and specialised. Lisbon, Porto, Braga, the Algarve, and Madeira offer programmes, networks, and cost structures that fit different stages. Connect early to Unicorn Factory Lisboa, Startup Lisboa, Startup Braga, Algarve Tech Hub, and Startup Madeira to accelerate learning and access to capital and partners.
About the author
James Muscat is the CEO and founder of moviinn®. He was born in Malta and raised in Melbourne, Australia. He studied and worked across Europe and the Middle East, having relocated several times, living in multiple countries around the world. This personal track record gives him a practical understanding of how to align business strategy, talent, and legal frameworks in international moves. James has led teams in startup and scaleup landings in Portugal and focuses on removing friction so that founders and teams can concentrate on their product and customer.
About moviinn®
moviinn® is a relocation and integration platform for founders, global teams and investors that choose Portugal as a base. We connect all of the dots described in this article. We work daily with the relevant public institutions and with incubators and accelerators across the country. We are an established business and a certified startup ourselves and we know the process from the inside. We support clients from visa strategy and corporate setup through landing and ongoing integration. We also participate in Web Summit in Lisbon and in national ecosystem initiatives throughout the year which allows us to introduce clients to the right programmes at the right moment.
Featured image: James Muscat, CEO and founder of moviinn® (Photo courtesy of moviinn®)
Disclaimer: The opinions expressed in contributed opinion pieces are those of the authors and do not necessarily reflect the views of Portugal Startup News.
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