
Tax advantages of Portugal vs Spain
Compared with only being taxed in Spain, Portugal offers a competitive corporate tax (IRC 19%), the participation exemption and a double taxation treaty that avoids paying twice on the same profits.
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Portugal vs Spain, data by data
Corporate tax
Best in PortugalSpain
25%
Portugal
IRC 19%
VAT / indirect tax
Better in SpainSpain
IVA 21%
Portugal
IVA 23%
Minimum capital
Best in PortugalSpain
desde 1 € (reserva hasta 3.000 €)
Portugal
Desde 1 €
Double taxation with Spain
Best in PortugalSpain
—
Portugal
Convenio sí
The Portugal column is highlighted when it is more favourable. Figures are indicative; your specific case is confirmed with the local advisor.
Why it is worth structuring it in Portugal
IRC of 21%, below the Spanish general rate and with the participation exemption applying to holdings.
No real minimum capital to incorporate the company, compared with the €3,000 of the Spanish SL.
Spain-Portugal double taxation treaty: you avoid being taxed twice on the same profits.
Proximity and same time zone, ideal for operating between both markets.
Protecting the fruit of your effort is a financial decision, not tax avoidance. A legal and stable structure in Portugal gives you security, control and tax that matches your activity.
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