top of page

Portugal’s new Start-up Law

Portugal’s new Start-up Law -
Portugal’s new Start-up Law - Portugal Business News

Portugal’s Prime Minister described a new Start-up Law on December 22nd. According to the new Start-up Law, Start-ups are defined as being micro, small and medium enterprises that use an innovative business model with a technological base and that have a high-growth potential. Under this definition, Start-ups and Scale-ups have similar characteristics with the latter being larger.

Such businesses play a fundamental role in the digital transformation of enterprises and lead to a paradigm shift towards innovation and an improved knowledge base. This is why it is important to develop a regulatory framework that provides incentives for enterprise creation in line with the Government’s Programme and with the Ministerial Declaration on EU Startup Nations Standard of Excellence signed by the Government under the 2021 Portuguese Presidency of the EU Council.

The new Start-up Law lays-out the legal definition as well as the goal that is to promote the national ecosystem for entrepreneurship. This includes defining specific investment policies and is linked to the Taxation system. The regime is based on share options plans which are central to attracting professionals who are qualified in the field of new technologies that are highly relevant to the Start-up system in the launch phase. The new Taxation system will ensure that taxation only occurs when the income is effectively received and will guarantee that workers will only be taxed when the transfer of shares is completed.

Portugal’s new Start-up Law is in line with the most efficient legislations at EU level, thus ensuring the best conditions for the creation and development of Start-ups in the Tech sector as well as in the field of disruptive technologies. The Law will foster an economy that is aimed at high growth in the fields of digitalization and innovation.

Related Posts

See All


Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page