How to open a business account in portugal

Opening a Business Account in Portugal Made Easy

Starting a business in Portugal is an exciting journey, especially with the country ranked as the 39th most accessible place to do business globally. With over 500,000 small businesses thriving in Portugal and favourable policies attracting thousands of foreign entrepreneurs every year, it’s crucial to establish a business bank account to manage finances efficiently. Whether you’re a resident or a non-resident, opening a business account is essential in ensuring compliance and streamlining your financial operations. In this blog post, we will learn how to open a business account in Portugal.

Why Open a Business Account in Portugal

A business bank account is essential for running a legally compliant business in Portugal. The country’s laws require companies to maintain separate accounts for personal and business transactions. This distinction is vital for tax reporting and ensures companies adhere to Portuguese financial regulations.

In addition to compliance, a business account simplifies daily operations by offering tools like invoice processing, payroll management, and transaction tracking. Entrepreneurs benefit from features like multi-currency management for international trade and access to corporate credit for expansion. Maintaining a dedicated business account can build trust with clients, suppliers, and financial institutions.

Types of Business Accounts Available in Portugal

Portugal offers several types of business accounts tailored to meet different business needs. Choosing the right account depends on your company’s size, nature, and operational requirements.

Standard Business Current Account

This account supports everyday business transactions like deposits, withdrawals, and transfers. It includes online banking, debit cards, and basic financial tools, making it ideal for small to medium-sized businesses needing a reliable solution.

Multi-Currency Account

It is designed for international businesses to hold multiple currencies, reducing conversion fees. Features include foreign exchange services, international payments, and seamless multi-currency transfers, benefiting companies dealing with global clients, suppliers, or cross-border transactions.

Business Savings Account

Businesses can earn interest on surplus funds with limited withdrawal access. Linked current accounts enable smooth transfers, helping organisations build financial reserves or save for long-term investments while maintaining liquidity for essential operations.

Startup-Focused Accounts

Created for new businesses, these accounts offer reduced or waived fees, financial management tools, and partnerships for funding or mentorship. They cater to entrepreneurs who aim for cost-efficient banking while growing their startups during the initial stages.

Corporate Accounts

They are tailored for large enterprises and include advanced financial tools like payroll processing, credit lines, and relationship managers. Multi-user access enables streamlined operations for companies with extensive banking needs and complex financial transactions.

Merchant Accounts

These accounts integrate with POS systems and online payment gateways, perfect for businesses accepting card payments. Features include multi-currency payment acceptance and reduced transaction fees, making them ideal for retail and e-commerce businesses.

Non-Resident Business Accounts

Simplified for foreign entrepreneurs, these accounts facilitate international transactions and remote application processes. They support multi-currency operations and ensure seamless financial management for businesses without a local presence in Portugal.

Overdraft-Enabled Accounts

Offering pre-approved credit limits, these accounts help businesses manage cash flow shortages. Flexible overdraft facilities cover unexpected expenses, ensuring smoother financial operations without disruptions during delayed income or increased costs.

Specialised Accounts for Professionals

These accounts cater to freelancers and self-employed individuals and provide flexible fee structures, professional loans, and simplified documentation. Ideal for independent contractors, they support streamlined financial management and access to tailored banking services.

Major Banks in Portugal Offering Business Account Options

Portugal’s banking sector provides a variety of options for businesses seeking tailored financial services.

Caixa Geral de Depósitos (CGD)

Portugal’s largest state-owned bank offers business accounts, financing, asset management, and insurance. Extensive branches and international presence make it ideal for businesses seeking comprehensive financial solutions.

Millennium BCP

Millennium BCP provides business accounts, credit, and investment services as Portugal’s largest private bank. Known for digital banking platforms and international operations, it’s suited for modern, growth-oriented businesses.

Novo Banco

Novo Banco focuses on domestic commercial banking, offering business accounts, financing, and asset management. Its extensive branch network supports businesses with nationwide operations and tailored growth solutions.

Banco Santander Totta

A subsidiary of Santander Group, it provides business accounts, international trade services, and cash management tools. It is ideal for businesses involved in cross-border trade or seeking global banking expertise.

Banco Português de Investimento (BPI)

BPI offers business accounts, credit facilities, and investment services. Known for strong customer support, it caters to businesses across sectors with solutions designed for long-term growth and stability.

ActivoBank

A digital bank under Millennium BCP, ActivoBank specialises in online business accounts. With mobile-friendly services and no-frills banking, it’s perfect for tech-savvy entrepreneurs and small businesses prioritising convenience.

Comparison Table of Major Banks Offering Business Accounts in Portugal

Note: Fees and services may vary depending on the chosen account type and additional services. Always confirm with the bank for the latest and specific details.

Key Steps to Open a Business Account in Portugal

Research and Select the Right Bank

Choosing the right bank is the first and most critical step. Not all banks offer the same services, so selecting one that aligns with your business’s specific needs is important. Factors to consider include:

• Banking services: Check for features like multi-currency accounts, international payment options, and integration with financial tools.
• Fees: Review account maintenance costs, transaction charges, and foreign exchange rates to avoid unexpected expenses.
• Customer support: For non-Portuguese speakers, selecting a bank with English-speaking representatives can be invaluable.

Some of the top banks in Portugal for business accounts are Millennium BCP, Caixa Geral de Depósitos, Santander Totta, Novo Banco, and ActivoBank. These banks offer business-friendly services and have strong reputations for reliability. Entrepreneurs engaged in cross-border activities should prioritise banks with global reach and strong digital platforms.

Gather Necessary Documents

To open a business account, you will need to submit several documents. Proper preparation can prevent delays and ensure a smoother process. The required documents include:

• Tax Identification Number (NIF): Issued by the Portuguese tax authority, the NIF is necessary for all financial activities.
• Company documents: Include a commercial registration certificate and a certificate of incorporation. If you’re starting a new business, additional proof of the business plan may be required.
• Proof of identity: A passport or national ID card for the authorised account holder(s).
• Proof of address: Recent utility bills, rental agreements, or official documents indicating your residential address.
• Business licences: Some industries require specific permits, which must also be presented to the bank.

In some instances, additional documents may be requested, such as shareholder agreements for partnerships or documentation proving the source of initial capital. Non-residents may need to provide a letter from a Portuguese financial consultant or lawyer to verify the business’s legitimacy.

Visit the Bank or Apply Online

Banks in Portugal offer two main ways to apply for a business account: in-person visits or online applications. For an in-person application, you must book an appointment and visit a branch of your chosen bank. A representative will guide you through the process, which includes filling out forms and submitting your documents.

Online applications are particularly advantageous for non-residents or entrepreneurs outside Portugal. Many banks provide secure online portals where you can upload scanned copies of your documents. This method reduces waiting times and allows for greater flexibility. However, some banks may require a follow-up visit for final verification and identity checks.

Initial Deposit Requirements

Portuguese banks typically require an initial deposit to activate your account. The amount depends on the bank, ranging from as low as €10 to as high as €500. This deposit acts as the starting balance and sometimes determines the account type.

Understanding the bank’s minimum balance policies is essential. Falling below this threshold could result in penalties or account deactivation. While some banks offer no-minimum-balance accounts, these often come with higher transaction fees. Entrepreneurs should weigh the pros and cons before making a decision.

Activate and Access Your Account

Once the application process is complete and the initial deposit is made, the bank will process your account activation. In most cases, this takes between 24 and 48 hours. After activation, you’ll receive your account details, such as the International Bank Account Number (IBAN) and the SWIFT code for international transfers.

Banks provide online and mobile banking platforms to manage your account effectively. These tools allow you to monitor transactions, schedule payments, and generate financial reports. Some platforms also offer additional features like integration with accounting software, which is helpful in automating routine financial tasks.

Time Taken to Open a Business Account in Portugal

Opening a business account in Portugal depends on the completeness of your documents and the bank’s procedures.

Note: The timeline may vary depending on the bank and whether the process is in-person or online. Delays can occur if documentation is incomplete.

Challenges and How to Overcome Them

Language Barriers

Navigating the banking process can be challenging for non-Portuguese speakers, especially in smaller towns where English-speaking staff are less common. Opting for banks known for catering to expatriates or hiring a translator can help mitigate these difficulties.

Bureaucratic Complexities

Portugal’s bureaucracy can be time-intensive, with multiple layers of document verification and compliance checks. To streamline the process, ensure all required documents are accurate and up to date. Consulting a financial advisor familiar with Portuguese regulations can also expedite the process.

Time Constraints

Opening a business account can be time-consuming, especially if unexpected issues arise. Entrepreneurs juggling multiple responsibilities should consider using online application options and setting clear timelines for each step. Regular follow-ups with the bank can also help prevent delays.

Additional Tips for Foreign Entrepreneurs

Leverage Multi-Currency Accounts

Portugal’s growing economy is well-integrated with global markets, making multi-currency accounts an essential tool for businesses dealing with international clients or suppliers. These accounts simplify transactions by allowing you to hold and transfer funds in various currencies, reducing conversion fees and delays.

Explore Specialised Banking Services

Some banks in Portugal offer tailored solutions for startups, such as lower fees, mentorship programs, and access to financial grants. Research these services to find opportunities that align with your business’s growth strategy.

Understand Tax Implications

Opening a business account comes with tax responsibilities. Familiarise yourself with Portugal’s corporate tax rates, VAT obligations, and social security contributions. Having a tax advisor can help you optimise your financial strategy and ensure compliance.

Build Local Connections

Networking with local business owners, legal professionals, and financial consultants can provide valuable insights and facilitate the account-opening process. Joining business associations or chambers of commerce in Portugal can also offer access to resources and support.

FAQs

Can I open a business in Portugal as a foreigner?

Yes, foreigners can open businesses in Portugal. EU/EEA citizens face minimal restrictions, while non-EU nationals may need a visa or residence permit. Consulting with legal experts ensures compliance with local laws.

Can a foreigner open a bank account in Portugal?

Yes, foreigners can open bank accounts in Portugal. They must provide a Tax Identification Number (NIF), proof of identity, and address. Depending on the bank, non-residents may also need additional documentation.

How much does it cost to open a business in Portugal?

The cost depends on the business type. Registering a company online costs around €360, while setting up a limited liability company requires a minimum share capital of €1. Legal and administrative fees may also apply.

How do I register my small business in Portugal?

Small businesses can be registered online via Empresa Online or in person at a company registration office. Essential steps include obtaining an NIF, registering with the Commercial Registry, and submitting required business documents.

What is the minimum amount to open a business bank account?

The minimum deposit to open a business bank account in Portugal varies by bank, typically ranging from €10 to €500. It’s best to confirm specific requirements with the chosen bank.