As you all know, Portugal, like any other country in the European Union, has important lines of credit for investments in the productive economy. This means that you, who are already doing business or want to start a business in Portugal, can benefit from these resources. But, it’s necessary to know what is the reality of financing in the country.

In this article, we’ll show you how business financing works in Portugal and how foreign entrepreneurs can access it. Let’s go!

Financing a Business in Portugal: The Reality!

There is an aura around the subject of access to investments in Portugal and sometimes this subject is either treated as something simple or a completely unattainable possibility. And the truth is: it is neither as straightforward or as far away. It takes time, effort, and in our opinion, a specialized team. 

So first things first:

Is it possible to get financing to open a company in Portugal as a Foreigner?

YES, but only in programs like Startup Visa. In real terms, the Startup Visa is for entrepreneurs of any nationality who intend to live in Portugal legally.

This is one of the assumptions of the program since the entrepreneur will receive a residence visa to undertake. 

But financing is not very high. It is well known that the financial resource for this line of credit is very small. It does not reach 20,000 euros, being paid in installments that can take up to two years. The reality is that it’s just a kick, it’s not going to get you off the ground or take your business to the next level.

Are there differences in getting financing being foreign or European?

The direct answer is no.

We are treated the same as any European citizen. This is very good, but it is important to be aware of what it means to have the same treatment as a European citizen. As a rule, there is no difference in obtaining resources when it comes to nationality. But without a track record in the country, it is difficult to assess the appeal applicant.

First, it should be noted that without a background in Portugal, it is not easy to get investment or access to funds. Funds for investment in companies exist on several fronts, whether they are the result of European Union programs or even coming from the Portuguese government such as Portugal 2030.

How to get a loan to open a company in Portugal?

Well, if the entrepreneur is not eligible for the Startup Visa program, getting funding to start your business from scratch is not a valid option.

Resources exist for opening businesses, but businesses that follow on from already established companies. Keep that in mind!

What factors favor the approval of financing in Portugal?

When the project of internationalization and creation of this company in Portugal is well structured, the chances of obtaining resources increase dramatically and some tips are essential for this undertaking.

1. Conduct a market study showing feasibility

2. Structure a BP – Business Plan with a vision of the future (3 years minimum)

3. Understand the actual cost of Portugal – especially the tax regime

4. Your financial history in your own country should not be ignored

And, with these materials and making the right path in Portugal, your chances increase a lot. 

Is it possible to do everything yourself?

Yes, it is possible.

But the truth is that the chances of you getting it are pretty low. Europe has some rites, and relationships and contact with people are essential. Also, the laws are complex and this cannot be ignored. Trying to do everything by yourself can be very complicated.

Are you planning on opening a business in Portugal? Let us know if we can help you.