🇵🇹Portugal vs Spain🇪🇸
Checked November 4, 2026 · How we score
| Metric | Portugal | Spain |
|---|---|---|
| Corporate tax | 19% | 25% |
| Top personal tax | 48% | 47% |
| Capital gains tax | 28% | 28% |
| VAT | 23% | 21% |
| Usual entity | Sociedade por Quotas (Lda) | Sociedad Limitada (SL) |
| Setup cost | $1,500–$3,500 | $1,500–$3,800 |
| Yearly cost | $2,500–$5,500 | $2,500–$6,000 |
| Time to form | 7 days | 15 days |
| Remote setup | Yes | Yes |
| Banking difficulty | 3/5 | 3/5 |
| Digital nomad visa | Yes | Yes |
| Our score | 5.5/10 | 4.9/10 |
Choose Portugal if…
- →Remote workers and freelancers relocating to Europe
- →Founders wanting EU residency and good living costs
- →Researchers and tech professionals eligible for IFICI
Choose Spain if…
- →Remote workers using the Beckham Law
- →Startups certified under the Startup Law
- →Founders targeting Spanish and Latin American markets
Questions people ask
Is Portugal or Spain better for a new company?
Portugal has the lower overall tax burden (19% corporate, 48% top personal). Portugal is also easier and cheaper to set up and run. Overall, Portugal scores 5.5/10 on our index vs 4.9/10.
What is Portugal's IFICI regime?
IFICI is the successor to NHR. It gives a 20% flat tax on Portuguese employment or self-employment income from qualifying professions (researchers, startup staff, tech and other eligible roles) for 10 years. Foreign income is often exempt but pensions and some capital income may be taxed.
What is the corporate tax rate in Portugal in 2026?
19% for mainland companies in 2026, 18% in 2027 and 17% in 2028. SMEs pay 15% on the first EUR 50,000 of profit, and surcharges of up to 9% apply to high profits.
What is Spain's Beckham Law?
A special regime that taxes new Spanish residents at a flat 24% on Spanish employment income up to EUR 600,000 (47% above) and taxes only Spanish-source income for six years. The Startup Law extended eligibility to remote workers and founders; investment income is taxed at 19%–28% above certain thresholds.
Can a foreigner open a company in Spain?
Yes. You need an NIE tax ID and a notarial deed. Foreigners can sign through a power of attorney from abroad; registration usually takes 2–4 weeks and costs USD 1,500–3,800 with a gestor.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.