Corporate Relocation to Portugal: Article 123-A of the Immigration Law
Luís Maria Branco | Lawyer
Joana Loureiro Veríssimo | Lawyer
Relocating to Portugal as a company or senior executive involves more than just logistics, it requires navigating a complex mix of corporate, regulatory, and immigration considerations. Understanding the framework for relocation, eligibility requirements, and residence procedures is essential to ensure a seamless transition. In this article, we break down what businesses and high-level professionals need to know to plan their move effectively.
Relocating Your Company to Portugal? How Article 123-A Supports Executive Mobility.
Portugal has increasingly positioned itself as a
strategic gateway to Europe, combining political stability, European Union membership, a competitive business environment, and a
high quality of life. Over the past decade, the country has actively attracted
international investors,
technology companies,
financial services firms, and
multinational groups seeking an
EU base. In parallel with this trend,
corporate mobility has become more relevant, and
Portuguese immigration law has evolved to facilitate the
relocation of companies and their key personnel.
One of the clearest examples of this approach is Article 123-A of Law no. 23/2007 of 4 July, which establishes a special residence regime applicable to the relocation of companies to Portugal. This provision is designed to ensure continuity when a company transfers its registered office or establishes a principal or secondary operation in Portugal, avoiding the need for holders,
directors, board members, or employees to restart the immigration process from the beginning.
Under this regime, a
residence permit may be granted to individuals linked to companies established in a
Member State of the European Economic Area or in another State defined by Government order, provided that the company relocates its seat or sets up an establishment in Portugal. The applicant must hold a
valid residence permit in the State where the company was previously established and must not constitute a threat to public order or public security.
In addition to these specific requirements, applicants must also comply with the general conditions set out in Article 77 of the
Immigration Law, including
lawful entry into Portugal or possession of an appropriate visa, proof of sufficient means of
subsistence,
evidence of accommodation, social security registration where applicable, absence of relevant criminal convictions, and the inexistence of
alerts in the Schengen Information System or national
immigration databases.
A central feature of Article 123-A is the recognition of the foreign residence title. Once the applicable legal requirements are satisfied, Portuguese authorities recognise the residence status previously granted by another State and issue a similar residence permit valid in Portugal. This mechanism provides legal certainty and reduces administrative disruption, particularly in the context of corporate restructuring or cross-border expansion.
From a
corporate law perspective, relocating business activity to Portugal typically involves either the
incorporation of a local legal entity or the registration of a
branch of a foreign company. The most commonly adopted structure is the
private limited liability company, including its single-member form, due to its
flexibility, limited
liability regime, and suitability for
residence permit applications linked to managerial or qualified professional activity. Alternatively, foreign companies may establish a
branch or representative office, allowing the parent entity to operate in Portugal without creating a separate legal personality. The chosen corporate structure is directly relevant for
immigration purposes, as the residence application must demonstrate a
genuine economic presence in Portugal and the effective exercise of
management or
professional functions within the Portuguese establishment.
Importantly,
incorporation and
registration procedures may be completed remotely through a
power of attorney granted to local legal representatives, allowing corporate formalities to be carried out without requiring prior travel to Portugal.
The
residence application itself is submitted by prior
appointment and delivered in person, together with general documentation such as a
valid travel document, proof of means of subsistence,
accommodation, and
criminal records. Specific corporate documentation is also required, including an updated
commercial registry certificate, proof of the applicant’s
role within the company, evidence of
social security registration, and confirmation of a
valid residence permit in the
State of origin.
Where granted, the residence permit follows the general duration rules of the
Immigration Law. Temporary
residence permits are valid for
two years and renewable for successive
three-year periods, while
permanent residence permits are valid for five years and renewable in accordance with the statutory framework. The regime also extends to
family members, allowing relocation without disrupting family unity.
In practice, Article 123-A operates as a
strategic instrument for companies seeking to establish or reorganise their presence in Portugal while ensuring
immigration stability for their key personnel. Nevertheless, careful preparation remains essential, as authorities assess both
corporate documentation and
individual compliance requirements.
At LVP Advogados, we regularly assist companies and senior executives in structuring relocation projects that combine corporate, regulatory, and immigration considerations. If your business is considering establishing operations in Portugal, or if you are planning a management transfer, our team can assess eligibility, coordinate documentation, and support the residence application process from start to finish.
If you require legal assistance, contact us by through our contact form, and our experts will reach out to guide you through every step of your relocation process
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