Can I set up a company in Portugal while remaining a Luxembourg resident?

Yes, it is possible. The preparation is done remotely (the NIF is obtained through a tax representative, with no trip), but signing the articles and opening the bank account are done in person, during a visit to Lisbon. And as long as you remain a Luxembourg tax resident, you stay taxable in Luxembourg on your worldwide income, and a controlled Portuguese structure may, under conditions, be caught by the ATAD-based CFC rules. The operation is only sound if framed upfront with a tax adviser.

Do the CFC rules apply to my Portuguese company?

It depends on the nature of the company. The ATAD-based CFC rules mainly target low-taxed controlled companies that lack substance; a genuinely operational Portuguese company with economic substance is not in the same situation. This calls for a case-by-case analysis and must be validated by a tax adviser: it is a company matter more than an individual one.

Does the Luxembourg-Portugal treaty avoid double taxation?

Yes, that is its purpose: the treaty of 25 May 1999 allocates taxing rights and prevents double taxation. It does not, however, neutralise the CFC rules or the risk that the company is attached to Luxembourg if it is genuinely run there.

Do I need to move to Portugal for this to be clean?

The safest way to come under Portuguese taxation is to genuinely move your residence and activity there, with a real presence. Running it from Luxembourg remains conceivable with a domiciliation address in Portugal and part of the activity genuinely justified locally, but a Portuguese company with no substance on the ground exposes you to reclassification on the basis of the place of effective management and, under conditions, to the ATAD-based CFC rules. Better to settle this with a tax adviser before setting up.

From Luxembourg · NIF remotely, then on-site visit

Set up your company in Portugalfrom Luxembourg

You live in Luxembourg and are considering a company in Portugal? The preparation is done remotely, in French: the NIF is obtained through a tax representative, with no trip. But signing the articles and opening the bank account are done in person, during a visit to Lisbon. And the decisive issue is not Portuguese: it is your Luxembourg situation (residence, ATAD-based CFC rules, place of effective management) that determines whether the operation is sound or risky. Here are the markers, dated 2026, to validate with a tax adviser.

Book a free assessment See the real risk

75+ entrepreneurs supported since 2025 · Service in French · Lisbon, Portugal

Read this first

The real risk is not in Portugal, it is in Luxembourg

If you remain a Luxembourg tax resident, setting up a company in Portugal does not take you out of the Luxembourg tax net. Luxembourg taxes its residents on their worldwide income and has, like all EU States, so-called CFC rules (controlled foreign companies) derived from the ATAD directive.

The ATAD-based CFC rules mainly target companies: under conditions, they allow certain income of a low-taxed foreign subsidiary that lacks substance to be reattributed to the Luxembourg result. They rarely affect the ordinary individual, but they deserve to be anticipated as soon as a Portuguese structure is interposed.

The ATAD-based CFC rules mainly target low-taxed controlled companies without real substance; their application to a genuinely operational Portuguese company is assessed case by case, to be validated with a tax adviser.
Place of effective management matters: a Portuguese company run from Luxembourg may be attached there for tax purposes.
The only sound way to come under Portuguese taxation is to genuinely move your residence and activity there, with real substance.
No address or shell replaces a real presence: it is the economic reality that is examined.

The Luxembourg markers

Residence and specificity, in brief

Luxembourg tax-residence test

You are a Luxembourg tax resident if your tax domicile or your habitual abode (in practice, more than six months on the ground) is there — in which case you are taxable on your worldwide income.

Specificity: the ATAD-based CFC rules

It is the European anti-avoidance device transposed in Luxembourg: it mainly targets low-taxed controlled foreign companies without substance, certain income of which may be reattributed. The point to clarify upfront as soon as a Portuguese company is held or interposed.

Treaty and double taxation

The treaty of 25 May 1999 avoids double taxation, but neutralises neither the CFC rules nor the reclassification risk if management stays in Luxembourg.

Your process

Prepare from Luxembourg, finalise on site

As a resident of a European Union State, the preparation is done remotely, in French: the NIF is obtained through a tax representative, with no trip. Signing the articles and opening the bank account are then done in person, during a visit to Lisbon. We coordinate the whole process from Portugal.

Obtain the NIF (remotely)

The NIF (individual Portuguese tax number) is the only fully remote step: it is obtained through a tax representative, without travelling. Not to be confused with the NIPC, the future company's tax number.

Frame the structure by video

Choice between ENI, Unipessoal Lda or Lda (capital from €1 per partner) and consistency with your Luxembourg situation, during a call in French. The file is prepared ahead of your visit.

Sign the articles on site

Signing the articles is done in person in Portugal, during a visit to Lisbon. The RCBE is then declared by the partner lawyer right after the Certidão Permanente is issued (24 to 48 hours after incorporation).

Open the account in branch

Opening the business bank account is done in person, in branch, during the same visit. Accounting is then handled by a partner Contabilista Certificado.

To go further

Useful pages before you decide

Setting up from abroad: the remote guide

The common backbone of remote formalities, valid wherever you live.

IFICI 2026: the targeted regime

Who can claim IFICI (formerly NHR), and who is excluded. Without overselling.

Portuguese company & reclassification risk

The place-of-effective-management and permanent-establishment mechanism, transposable to the Luxembourg case.

Employee-cost simulator

An order-of-magnitude figure for the cost of a hire in Portugal, no commitment.

Frequently asked questions

Luxembourg resident: what people ask me

Can I set up a company in Portugal while remaining a Luxembourg resident?: Yes, it is possible. The preparation is done remotely (the NIF is obtained through a tax representative, with no trip), but signing the articles and opening the bank account are done in person, during a visit to Lisbon. And as long as you remain a Luxembourg tax resident, you stay taxable in Luxembourg on your worldwide income, and a controlled Portuguese structure may, under conditions, be caught by the ATAD-based CFC rules. The operation is only sound if framed upfront with a tax adviser.
Do the CFC rules apply to my Portuguese company?: It depends on the nature of the company. The ATAD-based CFC rules mainly target low-taxed controlled companies that lack substance; a genuinely operational Portuguese company with economic substance is not in the same situation. This calls for a case-by-case analysis and must be validated by a tax adviser: it is a company matter more than an individual one.
Does the Luxembourg-Portugal treaty avoid double taxation?: Yes, that is its purpose: the treaty of 25 May 1999 allocates taxing rights and prevents double taxation. It does not, however, neutralise the CFC rules or the risk that the company is attached to Luxembourg if it is genuinely run there.
Do I need to move to Portugal for this to be clean?: The safest way to come under Portuguese taxation is to genuinely move your residence and activity there, with a real presence. Running it from Luxembourg remains conceivable with a domiciliation address in Portugal and part of the activity genuinely justified locally, but a Portuguese company with no substance on the ground exposes you to reclassification on the basis of the place of effective management and, under conditions, to the ATAD-based CFC rules. Better to settle this with a tax adviser before setting up.

Disclaimer

This page is for general information only; it does not constitute personalised legal, accounting or tax advice. The Luxembourg elements (ATAD-based CFC rules, residence, treaty) are given with an indicative confidence level and are subject to change; they must be validated by a tax adviser before any decision. Business Portugal is a consultant in company formation and setup, not an accounting, tax or law firm: we guide you and connect you with the right partner. Book a meeting to frame your project.

Let's talk about your project, from Luxembourg

A first free conversation, with no commitment, by video and in French, to frame your Portuguese incorporation and, above all, your Luxembourg situation. If a tax adviser is needed, we connect you with the right partner.

Book a free assessment

No commitment · By video · Service in French · Lisbon, Portugal