Portugal Startup Visa From Pakistan

Cheap route to Portuguese residency

Most visas designed for business purposes have a substantial minimum investment requirement, in order for the applicant to demonstrate their financial commitment to the country.

The Portugal Startup Visa has the lowest of all investment amounts, with the applicant having to prove that they have access to a minimum of €5,146; the minimum amount required for a years’ residence. This makes the Portugal Startup Visa the cheapest route to residency in professional situations.

Fast route to Portuguese citizenship

Citizenship routes for Portugal and other EU states are often extremely lengthy, with many years worth of consecutive residency required for application.

However, those in Portugal under a Startup Visa may apply for citizenship after just 5 years – and it’s often the case that being able to demonstrate business interests in the country increases the chances of approval.

If a Pakistani national is able to obtain citizenship, they may hold dual nationality and have both Pakistani and Portuguese passports. While the Pakistani government’s agreement with the Portuguese on the details surrounding dual nationality is still being worked upon, it has been in progress for several years and both countries are sympathetic toward one another.

Tax optimisation

When a Portugal Startup Visa holder has lived in the country for 183 days or more within a calendar year, they are granted ‘tax resident’ status.

This grants a 10-year beneficial tax status known as a ‘non-habitual resident’. This status allows the individual to not pay taxes on income earned abroad if taxed elsewhere with a Portuguese double tax agreement.

This can make doing business in Portugal considerably more competitive than other states for many entrepreneurs.

Visa-free travel to all Schengen Area states

Portugal is a member of the Schengen Zone, a group of 27 countries that form the largest visa-free travel area in the world. With a Portugal Startup Visa, holders can travel around all of the following states with no further visa required:

Family members can be included on the visa

Entrepreneurs heading to Portugal on a Startup Visa can also apply to take their eligible immediate family with them to reside. Dependents and partners can be added and travel with the visa holder – which makes for a great opportunity for the whole family to enjoy Portugal as the new startup business launches.

Pakistani nationals are non-EEA citizens and so there is no fast-track route to visa application. The eligibility criteria for the Portugal Startup Visa are strict, and the following applies to all applicants:

• The applicant must be aged 18 or over
• The applicant must have a clean criminal record with no spent convictions
• The applicant must have access to enough money to reside in Portugal with no reliance on state benefit (a minimum of €5,186 per annum) – this may be in either an overseas or Portuguese bank account
• The applicant must either own or have access to rented property to reside within Portugal

Up to five employees of a startup may be added to the visa application, as well as eligible family members for each.

The startup business to which the visa refers, and the entrepreneur intends to travel to Portugal for, must also meet some set eligibility requirements. The company can be either incorporated and set up from scratch within Portugal or transferred from another country.

There is currently no requirement for a Portugal Startup Visa applicant to demonstrate a minimum viable product or working prototype. Just a well-developed business idea and plan is enough for application, which makes applying for such a visa an interesting prospect in comparison to other such visas in other states.

The eligibility criteria for the startup are as follows:

• The project must be focused on innovation based on technology and/or knowledge
• The project must be scalable with evidence of potential to enter the international market
• The project must be intending to employ specialist employees (in the future if not immediately upon company conception)
• Potential must be demonstrated that a turnover or asset value of €325,000 per year in 5 years time from company conception
• The project must have been accepted for acceleration by one of the listed accredited Portuguese business incubators.

Unlike the business visas for many other countries, the Portugal Startup Visa stipulates no set educational or professional experience required – although it should be noted that relevant experience is likely to improve the chances of application success. There is also no minimum investment capital requirement.

It should be noted that under no circumstances will any startup business be accepted unless it relates to an innovative use of technology or knowledge. Examples of previously granted Startup Visas include businesses such as a network of automatic bakeries and a high street retail brand with IT specialists hired to create an online marketplace.

Prepare a business plan

A comprehensive business plan should be prepared for the startup business. If the business already exists and is to be transferred to Portugal from another country (be that Pakistan or anywhere else), this plan must still be made and can refer to the growth of the business rather than simply its conception.

Compile all personal and professional documents

All required documents should be compiled, copied and certified as appropriate. If any document is in a language other than Portuguese or English, it should be translated by a suitably qualified translator.

Apply for business incubator approval

At this point, the entrepreneur can log onto the IAPMEI website (IAPMEI is Portugal’s main government agency for businesses, working under the supervision of the Ministry of Economy) and browse the list of approved business incubators. Upon identifying which are appropriate for the startups industry and development, applications can be made online to those relevant to join their acceleration program.

File visa application

Once one or more business incubators accept a proposal, the visa application can be made. For Pakistani nationals, this is done in person at the Embassy of Portugal in Islamabad. IAPMEI will review and either approve or decline the visa application within 30 business days.

Obtain visa

If the visa application is successful, the applicant can either have their visa and supplied documentation returned by post or can collect them in person at the Embassy of Portugal. Within 40 days of the visa being granted, the entrepreneur must sign a contract or agreement with the relevant business incubator. This can be done online.

Travel to Portugal and obtain a Portuguese residency permit

Once successfully granted, the visa holder is free to travel to Portugal at any date from its issue. The visa will stipulate a date at which the visa holder must obtain a residency permit. This is issued for an initial period of 4 months and is granted in person at an SEF (Portuguese immigration authority) office.

Once the visa holder is in the country, business activities for the startup can begin right away.