As I've said in another comment, IRS is literally filling out an online app for 5 minutes - and all relevant entries are already pre-filled. It's very easy and simple.
As for companies, my girlfriend works at a company run by two Germans and they basically hire an accountant to do the paperwork every year. It's pretty cheap. For a larger company, you'd have to hire a local to do the accounting, though.
Maybe I'm missing something because I don't run my own company, bear in mind that hiring freelancers is cheap here.
Why is it better?
Purportedly they can fine you tens of thousands of euros for tiny honest mistakes even if you don't owe one cent of tax (Modelo 720).
If you have questions drop me a line.
* highly educated
Universities are not very good.
* and english speaking
Don't they speak Portuguese?
*youth and a will to conquer the world.
Unlikely. And Silicon Valley is not about guys with laptops creating some websites. It is all about high tech, top universities, supply chains and synergy effects. You may be able to to a technology heavy start-up in the UK, Germany, China, Japan, Korea but in Portugal this is difficult. You lack the industrial supply chain of customized high tech products. Just working on your laptop you can also do in Kenya (which actually is quite innovative in IT).
Portugal is a nice place. Nice people. But too little high tech, too much debt, demography problems etc.
" destruction created by more than 50 years of fascist dictatorship." Not aware how much damage this created. The Portuguese empire was not important before the dictatorship anymore, so not sure how much time you really lost.
But PT has many good things. I wish RE was cheaper in Lisbon and I would buy immediately.
* Cost of living for a good quality of life still being relatively high or rising, especially in Lisbon and other tourist/expat areas. And a second tier city in Portugal is much less of a clear choice since that is comparable to a lot more places.
* The tax system being very complicated. One can always argue about how much tax to pay, but few people want a complicated tax system, especially not as a foreigner. (And is usually an indication that other systems are complicated as well).
* The tech scene not really happening. Despite the usual "next Silicon Valley" it doesn't really stand out from anywhere else as far as I can tell.
There might certainly be things I don't see, but at least initially it doesn't seem like Portugal rise above the competition to the extent that you wouldn't have to consider quite a few other options.