Can I move to Portugal and open a company in Estonia?

Ana, a digital entrepreneur, moved to Portugal for the lifestyle — and stayed for the tax benefits. One day, while managing her clients remotely, she heard about Estonia’s e-Residency program. A question popped into her head: can I really live in Portugal under NHR and run a company in Estonia?

What she discovered opened the door to one of the most powerful tax strategies in Europe today.

 

Can you live in Portugal under NHR and run a company in Estonia?

Yes, you absolutely can. Ana looked into the details and found that it’s not only possible — it’s quite common.

• Portugal’s NHR (Non-Habitual Resident) regime is a personal tax status, not a corporate one.
• Estonia’s e-Residency lets you open and manage a company 100% online.
• You can live in Portugal, be tax resident there, and still own and operate a business in Estonia.
• The two systems don’t conflict — as long as the company is not managed from Portugal.

📌 As attorney and digital business consultant Thiago Vieira explains in his legal analysis here, the crucial point is to avoid what’s called “effective management” of your Estonian company from Portuguese territory.

 

Will Portugal tax the dividends I receive from my Estonian company?

It depends — but with NHR, many entrepreneurs find that their dividends can be tax-exempt in Portugal.

• If dividends are taxed in Estonia (at the 22% corporate rate), Portugal typically won’t tax them again under the double taxation agreement (DTA).
• The income must come from a non-blacklisted jurisdiction and follow treaty rules.
• Again, the company must not be managed from Portugal.

So Ana realized she could receive dividends from her Estonian company with minimal or no tax, as long as the structure was correct.

 

Can I pay myself a salary from my Estonian company while living in Portugal?

Yes — but this is where things get more complex.

• If the work is performed from Portugal, the salary becomes Portuguese-source income, even if it’s paid by an Estonian company.
• NHR applies a 20% flat tax on qualifying professions — otherwise, regular progressive rates may apply.
• Portuguese social security contributions are mandatory.
• Services like Companio Work can help with international payroll setup and compliance.

Ana learned that she could pay herself a salary — but had to register it correctly and prepare for social contributions in Portugal.

 

What changes in 2025 with Portugal’s new IFICI regime?

The NHR regime is being replaced by the IFICI regime in 2025 — but current NHR holders like Ana retain their status for 10 years.

The new IFICI regime has stricter eligibility:

• Must not have been tax resident in Portugal in the past 5 years.
• Must have a qualifying visa or EU/EEA/Swiss nationality.
• Requires economic or professional ties with approved Portuguese entities.

📌 As highlighted by Thiago Vieira here, eligibility is now focused on specific sectors such as scientific research, tech startups, export-driven industries, and innovation centers.

This makes it harder for new digital nomads or remote freelancers to qualify — but not impossible.

 

Is combining Estonian company ownership with Portuguese tax residency really worth it?

Yes — and not only under NHR or IFICI. Even without these special tax regimes, many entrepreneurs find that owning an Estonian company while living in Portugal can offer meaningful advantages.

For instance, if you only receive dividends and no salary, Estonia doesn’t require you to pay social security contributions — unlike Portugal, where even those not drawing a salary must contribute a fixed monthly amount (currently €181.50).

VAT rules are also more flexible in Estonia: foreign clients are generally VAT-exempt whether they’re individuals or companies, and depending on your business model, VAT registration can be deferred — something not possible in Portugal.

💡 To dive deeper into the legal and strategic considerations of combining Estonia and Portugal, we highly recommend reading Thiago Vieira’s article on the topic, published via IberoJur.

 

Co-Author: Thiago Vieira, Attorney

Lawyer specialized in Digital Law, Startups, and Innovation. Master in Business Law of the European Union.

Connect with him: 🌐 Website & 🔗 LinkedIn

Who is Thiago Vieira: From Developer to Online Consulting