Portugal Startup Visa From Canada

Visa-free travel around the Schengen Area

Portugal is a member of the Schengen Area, a visa-free travel bloc across Europe. Those holding a Portugal Startup Visa are able to travel around all of the countries and territories within it without having to apply for any further paperwork; and in some cases, without having to present a passport at all.

As of October 2023, the Schengen Zone includes Austria, Belgium, Czech Republic, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Slovakia, Slovenia, Spain, Sweden and Switzerland. Furthermore, the European microstates of Monaco, San Marino and Vatican City can also be travelled into and around visa-free – as they enforce no border control with their neighbours, which are Schengen states. As almost all of these countries are not usually accessible by Canadian nationals without a great deal of administration, this travel perk offers unrivalled European travel access.

Access to industry-leading business incubator services

In order to be granted a Portugal Startup Visa, the applicant’s business or business idea must have been accepted onto an innovation accelerator programme by a Portuguese business incubator.

These startup incubators are organizations who specifically operate to nurture and develop emerging businesses.

Offering a variety of coaching opportunities, training courses, funding pots, chances to strategic contact build and networking events, these business incubators often are resourced from experts and contacts from across Europe – making them some of the world’s most successful groups to be involved with.

Portuguese residency with a low investment

The Portugal Startup Visa allows holders to apply for a Portugal residence permit to legally live in the country.

There are a variety of visas available that offer the opportunity for residency, but the Startup Visa is one of the cheapest routes to this.

The eligibility criteria for the Portugal Startup Visa requires proof of at least €5,146. Compared to other visa routes such as the ‘Golden’ investment visa, this is considered very cheap – as the financial requirement for this is a minimum of €250,000.

Favourable tax rates

After a period of one year being legally resident in the country under a Portugal Startup Visa, the visa holder becomes a Tax Resident.

Taking advantage of the ‘Non-Habitual Resident’ tax status, the visa holder is able to not pay tax on any income earned abroad in a state with a double-tax agreement with Portugal. This favourable tax status lasts for a 10-year period.

Fast track route to European Union citizenship

Portugal is a European Union country, so those who hold citizenship of the country are free to roam, work and live within all member states. Aside from this, a Portuguese passport is considered one of the most valuable in the world, allowing visa-free travel to 187 countries worldwide.

After five years of legal residence in Portugal, visa holders are able to apply for citizenship. This is a considerably shorter time period than available for most, and maintaining a successful business within the country is believed to increase the chances of it being granted.

Startup Visa Program: Eligibility criteria for entrepreneurs

The individual applying for a Startup Visa must meet the following criteria:

• Be a citizen of a non-EU country
• Not be a holder of a residence permit in any EU country
• Be aged 18 or over
• Have a clean criminal record in both their home country and Portugal
• Have access to and be able to prove sufficient financial resources to support themselves in Portugal without invoking state support. As of October 2023, this amount is a minimum of €5,148 per annum, as this is considered the minimum cost of living in Portugal. This money may be in a Portuguese or Canadian bank account (subject to relevant currency conversion)
• Have access to and be able to prove a place to live in Portugal.

Up to five employees of a startup may be included on the Startup Visa, and each will have to meet this eligibility criteria.

Despite popular misconception, the Portugal Startup Visa holds no requirement for the applicant’s education level or professional background.

Startup Visa Program: Eligibility criteria for startups

The startup for which the application to the Startup Visa program is being made must meet the following eligibility criteria:

• The business can either be an existing entity in a foreign country or should be intended for set-up in Portugal
• The business must be related to innovation, technology and knowledge
• The business must be considered scalable with the intention to enter an international market as a long-term goal
• The business must have the intention of creating qualified employment for professional specialists in Portugal as a long-term goal
• The business must hold the potential of reaching a minimum turnover or asset value of €325,000 per annum within a five-year period
• The business (or business plan) must have been accepted onto the acceleration programme of a certified business incubator.

There is no requirement for a startup to already have a minimum viable product or prototype in place.

Step One: Prepare a startup business plan

If the startup doesn’t yet exist, applicants should create a thorough business plan for their concept. It is recommended that this follows standard business planning formats. There is no requirement for this business plan to be approved by a bank or other professional body; it instead will be reviewed by a relevant startup incubator later on in the visa application process.

Step Two: Compile supporting documentation

The applicant will need to compile all appropriate supporting documentation on behalf of themselves and the startup for application. French Canadians should note that any documentation not in Portuguese or English will need to be translated and certified by a relevant notary.

Step Three: Apply to a business incubator acceleration programme

As of October 2023, there are 99 business incubators offering certified acceleration programmes under the IAPMEI Portugal Startup Visa scheme. Distributed across mainland Portugal, The Azores and Madeira, these organizations can be browsed through online and the criteria for each examined (as the requirements and resources available differ). At this stage in the process, the applicant can choose to contact incubators they’re interested in or simply apply with their startup info directly to them for inclusion on their acceleration programme.

Step Four: Register on the Startup Visa program website with IAPMEI

At this point, the applicant should register on the official IAPMEI Portugal Startup Visa website and supply some basic company information here. IAPMEI is the Portuguese Department for Competitiveness and Innovation. Website registration notifies IAPMEI of the applicants’ intention to do business in Portugal, be that transferring an existing business into the country or starting a new one there.

Step Five: Sign acceleration plan agreement

When acceptance is received from a business incubator (or, ideally, more than one), the applicant should choose the most suited to their startup and sign an acceleration plan agreement with them. This solidifies their membership of the scheme and allows the business to start accessing relevant resources.

Step Six: Formal visa application at Portugal Embassy

The formal application to the Portugal Startup Visa scheme can be made at the point in this process. The entrepreneur must visit their local Portugal Embassy or Consulate General for a pre-booked appointment to form-fill, supply biometric information and be interviewed. If at this stage in the process additional information is requested, the applicant may have to return to fulfil further requirements later on. Once filed, the application is processed and can take up to 30 days before a decision is reached.

Step Seven: Obtain Portugal residence permit

If the visa is granted, the applicant is free to travel to Portugal to begin their business efforts. In the first month of their stay, they should attend a local SEF (Portuguese immigration service) office to apply for their Portugal residence permit. This will require presentation of the valid visa and some further supporting documentation.

In order to maximize the chances of a successful application, it is always recommended the services of specialist immigration lawyers are employed. Total Law can help with advice on documentation, guidance on business planning and providing tips for the in-person application process. Call our North American office now on +1 844 290 6312.