I would like to open a restaurant in Lisbon. For that purpose, I would like to raise equity funds from UK-based investors into a UK-registered company, and for that Company to, in turn, invest in a newly incorporated Portuguese-registered company.
The Portuguese Company will enter into a lease for a location in Lisbon, which will in turn operate a restaurant and employ a minimum of 10 Portuguese citizens. Will all shareholders be eligible for residency over time as a result of the Portuguese company’s employing citizens?
Answers
Establishing a Portuguese company to operate a restaurant may indeed provide a pathway to Portuguese residency. However, residency is not granted automatically to all shareholders solely because the company creates jobs or employs Portuguese nationals.
Each applicant must independently satisfy the legal requirements for the relevant residence permit. Factors such as the applicant’s role in the business, the viability and substance of the investment, effective management involvement, and compliance with Portuguese immigration law are all taken into consideration.
Under Portuguese law, residence permits for entrepreneurial activity are assessed individually. The immigration authorities will evaluate whether each applicant genuinely carries out an entrepreneurial or management role and whether the business activity is real, sustainable and economically relevant. The mere status of shareholder, without effective participation in the investment or management of the business, is generally insufficient to establish eligibility.
The proposed UK holding company structure is legally feasible. However, it should be carefully designed from both an immigration and tax perspective to ensure it supports your long-term objectives. Particular attention should be given to the corporate structure, governance, shareholder rights, tax implications in both jurisdictions, anti-abuse provisions, and the substance requirements expected by the Portuguese authorities.
Depending on how the investment is ultimately structured, one or more investors may also qualify under the Portuguese Golden Visa (ARI) framework. Since the 2023 legislative amendments, direct real estate investment is no longer an eligible route. However, other qualifying investment categories remain available, including investment funds, scientific research, cultural support, and business investment involving the creation or maintenance of jobs, provided that the statutory requirements are met. A detailed legal assessment would be required to determine whether your proposed investment could be adapted to fit one of these eligible categories.
This assessment is supported by the Portuguese Immigration Law (Law No. 23/2007, as amended), its implementing regulations, and the administrative practice of the Portuguese authorities, which consistently require an individual analysis of each applicant and the effective existence of the underlying investment or entrepreneurial activity. Portuguese administrative case law has likewise reinforced that residence rights depend upon compliance with the statutory requirements applicable to each applicant and cannot be inferred solely from indirect share ownership or the company’s employment figures.
Given the complexity of combining a UK holding structure, foreign investment, Portuguese corporate law, tax planning and immigration requirements, we would recommend a comprehensive legal assessment before implementing the structure to ensure it achieves both your commercial and immigration objectives.
Job creation remains one of the eligible investment routes to obtain the Portuguese Golden Visa. Therefore, the creation of at least 10 jobs may constitute a basis for a Golden Visa application, provided that all applicable legal requirements are fulfilled.
However, the mere fact that an individual is a shareholder in a Portuguese company that creates employment does not automatically mean that all shareholders or investors are entitled to residency. It is necessary to assess whether each investor’s participation in the company and their involvement meet the legal requirements of the relevant investment route.
To assess the available options, it would be necessary to review each investor’s nationality, the percentage and nature of their shareholding, their role in the management or activity of the company, and whether they intend to reside in Portugal or remain abroad.
