Portugal vs Spain

Portugal offers fast setup via 'Empresa na Hora' and online services; the usual form is a Sociedade por Quotas (Lda). Founders need a Portuguese tax number (NIF), and the commercial registry records the company.

The usual vehicle is a Sociedad Limitada (SL), formed by a notarial deed and registered in the Mercantile Registry (Registro Mercantil). Founders need a Spanish tax ID (NIF, and an NIE for individuals), and there is a modest minimum share capital.

Portuguese banking includes major retail banks and online options. Opening an account usually needs an NIF, ID and proof of address; non-residents can open accounts with additional documents. The Banco de Portugal supervises banks.

Spanish banking includes large retail banks and online banks. Opening an account usually needs an NIE, ID and proof of address or activity; non-resident accounts are available with more documentation. The Banco de España supervises banks.

Portugal welcomes foreign investment through AICEP (Portugal Global), with EU free movement of capital and no exchange controls. Screening applies only to a narrow set of strategic assets; incentives include investment tax credits (RFAI), the SIFIDE R&D credit, and EU-cofinanced regional programs.

Spain welcomes foreign investment through ICEX-Invest in Spain, with EU free movement of capital and no exchange controls. Screening applies to investments by non-EU investors in strategic sectors; incentives include R&D tax credits, regional aid and special regimes (e.g. the Canary Islands and startup law). Profits repatriate freely.

Portugal taxes personal income (IRS), corporate profits (IRC) and VAT (IVA), run by the Autoridade Tributária (AT). Tax residents are taxed on worldwide income; special regimes for new residents have changed, so verify current rules.

Spain taxes personal income (IRPF), corporate profits and VAT (IVA), administered by the Agencia Tributaria (AEAT). Tax residents (183+ days) are taxed on worldwide income; regions set part of the personal rates.

Non-EU nationals need a residence visa or permit that allows work; EU citizens work freely. Routes include the job-seeker visa, employed and skilled routes, the D7 for passive income and a digital-nomad visa. AIMA handles residence permits.

Non-EU nationals need a work and residence authorisation to work in Spain; EU/EEA and Swiss citizens work freely. Common routes are employed work, the Highly Qualified Professional permit and self-employment, plus a digital-nomad visa for remote workers. Applications run through the immigration authorities and consulates.

Non-EU students staying longer than 90 days need a Portuguese student visa first and then a residence permit for study, based on admission to a higher-education institution, proof of funds and health insurance. The visa comes from the Portuguese consulate; residence is handled by AIMA, the Agency for Integration, Migration and Asylum — note that many older guides still name SEF, which AIMA replaced. EU/EEA/Swiss students need no visa.

Non-EU students staying longer than 90 days need a Spanish student visa or stay authorisation, based on admission to an accredited institution, proof of sufficient funds and health insurance. You apply through the Spanish consulate covering your residence, with in-country procedures handled by the immigration authorities via the electronic administration portal. EU/EEA/Swiss students need no visa.

Portugal is in the Schengen Area, so short tourist or business visits follow Schengen rules: up to 90 days within any 180-day period across the whole area. Visa-exempt nationals need no visa; everyone else applies for a short-stay (type C) Schengen visa through the official Portuguese visa service. A new ETIAS authorisation is being introduced for visa-exempt travellers.

Spain is in the Schengen Area, so short tourist or business visits follow Schengen rules: up to 90 days within any 180-day period across the whole area. Visa-exempt nationals need no visa; everyone else applies for a short-stay (type C) Schengen visa at the Spanish consulate covering their place of residence. A new ETIAS authorisation is being introduced for visa-exempt travellers.

Portugal grants permanent residence after generally 5 years of continuous legal residence, requiring basic Portuguese (A2) and a clean record. It lets you live and work indefinitely and, uniquely, Portuguese citizenship is also available after 5 years — making the residence-to-citizenship path relatively fast.

Spain grants long-term residence (residencia de larga duración) after generally 5 years of continuous legal residence, letting you live and work indefinitely on equal terms with Spaniards. You show continuous residence and a clean record; long-term residence then leads toward Spanish citizenship (often after 10 years).

Portugal grants nationality after 5 years of legal residence, with an A2 Portuguese-language requirement, and permits dual nationality. Portugal is generous with time counted and Sephardic/Portuguese-speaking ties. Note: reform proposals in 2025 sought to lengthen the residence period — always verify the current rule before relying on it.

Naturalization by residence normally requires 10 years of legal residence, but only 2 years for nationals of Ibero-American countries, Andorra, the Philippines, Equatorial Guinea, Portugal or people of Sephardic origin (and 1 year in some family cases). You pass the DELE A2 Spanish exam and the CCSE culture/constitution test. Spain requires renouncing your prior nationality except for those dual-nationality countries.

Portuguese employment under the Labour Code is protective: a national minimum wage (RMMG), 22 working days' paid holiday, and 13th- and 14th-month payments. Dismissal generally needs just cause and follows a set procedure; social security is compulsory and disputes go to the labour court (tribunal do trabalho).

Spanish employment is governed by the Workers' Statute: a national minimum wage (SMI), 30 calendar days' paid holiday, and dismissal that requires cause and severance (typically 20 or 33 days' pay per year). Most contracts are now permanent after the 2021 reform; sector collective agreements (convenios) apply, and disputes go to the social courts.

Portuguese trade with non-EU countries clears through the Tax and Customs Authority (AT) with an EU EORI number. You classify goods in TARIC to find duty and import VAT (23%), which can be deferred to your VAT return. Declarations are electronic; intra-EU trade needs Intrastat and dual-use exports need a licence.

Spanish trade with non-EU countries clears through the Spanish Tax Agency's Customs (Aduanas) with an EU EORI number. You classify goods in TARIC to find duty and import VAT (21% IVA), which can be deferred to your VAT return. Declarations use the DUA; intra-EU trade needs Intrastat and dual-use exports need a licence.

Portuguese trademarks are registered with the National Institute of Industrial Property (INPI Portugal). You search the register, file under Nice classes, and it publishes in the Industrial Property Bulletin for a two-month opposition period. A Portuguese trademark lasts 10 years and is renewable; an EU-wide alternative is the EU trademark via EUIPO, and copyright arises automatically.

Spanish trademarks are registered with the Spanish Patent and Trademark Office (OEPM). You search the register, file under Nice classes, and it publishes in the Official Industrial Property Bulletin for a two-month opposition period. A Spanish trademark lasts 10 years and is renewable; an EU-wide alternative is the EU trademark via EUIPO, and copyright arises automatically.

Portugal's public employment service is the IEFP, which runs the official job portal, while much hiring also happens on commercial boards and company sites. The structural point for non-EU workers is that two different bodies are involved: you need a work visa and residence permit tied to a job, and AIMA is the authority handling residence — so the employment service and the residence authority are separate doors. Citizens of the EU, EEA and Switzerland need neither document.

Spain's public employment service is SEPE, which runs the national job portal and the unemployment system, but it sits alongside regional employment services rather than replacing them — so there are two public layers to search, not one. Non-EU workers generally need a work-and-residence authorisation tied to a job offer, though the entrepreneur and digital-nomad routes exist as alternatives that do not depend on one. EU, EEA and Swiss citizens can work freely.

Portugal's statutory national minimum wage is set by the government each year, so the cadence is a single annual decision you can plan around. It is expressed as a monthly amount and paid in 14 instalments, which matters when converting to an annual figure. Pay is quoted gross, with income tax (IRS) and social-security contributions reducing take-home, and Statistics Portugal is the authoritative source for wage data.

Spain's statutory national minimum wage, the Salario Mínimo Interprofesional, is set by the government and quoted as a monthly figure paid in 14 instalments — not 12. That payment structure is the arithmetic trap: multiplying the monthly SMI by twelve understates the annual figure, so any cross-country comparison has to use the fourteen-payment basis. Pay is gross, with income tax (IRPF) and social-security contributions reducing take-home, and the INE is authoritative for wage data.

Portugal's scholarships for international students come mainly through the Camões Institute (language and cultural cooperation awards), the FCT for doctoral and research funding, and individual university scholarships. Explore options on the Camões, FCT and university sites and apply by each deadline.

Spain's main government scholarships for foreigners are the MAEC-AECID scholarships (run by the Spanish Agency for International Development Cooperation under the Foreign Ministry), covering various master's, research and Spanish-language programs, alongside many university awards. Explore options on the AECID and university sites and apply by each deadline.

To study in Portugal you apply to the university, then, once admitted, apply for a student residence visa at the Portuguese consulate and, after arrival, complete your residence permit through the immigration authority (AIMA). Explore options on the Study in Portugal and university sites and apply by the deadline.

To study in Spain you apply to the university, then, once admitted, apply for a student visa (visado de estudios) at the Spanish consulate. For stays over six months you obtain a foreigner ID card (TIE) after arrival. Explore options on the university sites and apply by the deadline.

Portugal places no restriction on foreigners buying property; you just need a NIF (tax number). Renting typically requires a deposit of one to two months and a registered contract. Buying goes through a lawyer/notary, is registered at the Land Registry (Conservatória do Registo Predial), and carries property-transfer tax (IMT) plus stamp duty.

Spain places no restriction on foreigners buying property; you just need an NIE (foreigner ID number). Renting is governed by the Urban Leases Law (LAU), with a deposit (fianza) usually of one month lodged with a regional body. Buying goes through a notario, is registered at the Land Registry (Registro de la Propiedad), and carries transfer tax (ITP, ~6–10% on resale) or 10% VAT on new homes.

Portugal's public Serviço Nacional de Saúde covers legal residents with mostly free or low-cost care. Once you are a legal resident — registered and, where applicable, contributing to social security — you register with your local health centre for an SNS user number. The sequencing point: some visa applicants must show private health insurance until they are covered by the SNS, so the private policy is a bridge rather than a permanent parallel.

Spain's public National Health System covers residents who contribute to social security — through work, self-employment or as a dependant — and it is run by the 17 autonomous communities, so practical details vary by region. People who do not contribute, such as non-lucrative or student visa holders, generally need private insurance. The route many miss: the Convenio Especial lets non-contributing residents join the public system for a monthly fee.

Portugal's Segurança Social provides pensions and social insurance, funded by employer and employee contributions. Beyond the public health service, motor third-party liability insurance is compulsory for vehicles, while home insurance is commonly held by tenants and owners without being a legal requirement — a useful contrast with countries where renters' cover is mandatory. Insurers and pension funds are supervised by the same body, the ASF, so retirement products fall under the same regulator as your car policy.

Spain's Seguridad Social provides pensions and social insurance, funded by both employer and employee contributions, and it is administered through the Tesorería General de la Seguridad Social — the treasury arm is the body that actually collects. Beyond mandatory health cover, motor third-party liability insurance is compulsory for vehicles. Insurers are supervised by the DGSFP, which is a directorate-general inside the ministry rather than a standalone agency.