Portugal, Spain, Indonesia, Cyprus: Tax Rates & Business Setup Compared

Side-by-side breakdown of tax rates, business setup, residency pathways, and 6 more dimensions for founders choosing where to incorporate in 2026.

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4 selectedClear all
🇮🇩Indonesia
61
Worldwide
🇪🇸Spain
69
Worldwide
🇵🇹Portugal
76
IFICI (Incentivo Fiscal para a Internacionalização de Competências e Investimento)
🇨🇾Cyprus
81
Worldwide

Dimension Profile

Shape = jurisdiction fingerprint. Gap = your decision.

Tax Regime Comparison5
🇮🇩IndonesiaWorldwide35%
🇪🇸SpainWorldwide47%
🇵🇹PortugalIFICI (Incentivo Fiscal para a Internacionalização de Competências e Investimento)48%
🇨🇾CyprusWorldwide35%
Tax system mismatchCritical

Indonesia and Spain and Cyprus tax all worldwide income once you become a tax resident (top rate: 47%). Portugal does not - only locally-sourced income is taxed. This is a fundamental structural difference that affects your total effective tax burden.

Exit tax applies in one jurisdictionCritical

Spain and Portugal have an exit tax. If you establish residency and later wish to leave, you may owe tax on unrealized gains or assets at departure. The other countries in this comparison do not have an exit tax.

13pp personal tax rate spreadNote

Both countries tax worldwide income, but the top personal income tax rates differ materially. Portugal: 48% vs Indonesia: 35%. Both apply to all global earnings once you establish residency.

CFC rules apply in one jurisdictionReview

Spain and Portugal have Controlled Foreign Corporation (CFC) rules. Owning a foreign company as a resident may trigger local tax on undistributed profits - even if the company pays no dividends. The other countries in this comparison do not have CFC rules.

Special tax regime available in one jurisdictionNote

Portugal (IFICI (Incentivo Fiscal para a Internacionalização de Competências e Investimento)) offers a qualifying program that may exempt foreign-source income from local tax for up to 10 years. This can significantly reduce your effective rate compared to the standard regime.

Not tax advice. Tax laws change frequently. Verify with a qualified professional before making residency decisions.

Field-by-Field Breakdown

Green = best value per row
Metric
🇮🇩Indonesia61
🇪🇸Spain69
🇵🇹Portugal76
🇨🇾Cyprus81
Dimension Scores
Corporate Tax
37
32
55
83
Funding
80
100
95
85
Visa
90
90
90
90
Residency
43
43
78
65
Tax Res.
55
45
45
70
Practical
45
96
91
86
Remote Work
67
64
69
64
Family
75
95
95
100
Ecosystem
70
60
90
65
Corporate Tax Details
Corporate Tax Rate22%25%21%12.5%
Capital Gains Tax-28%28%0%
Tax Treaties71967865
Territorial SystemNoNoNoNo
Funding Details
Active VCs301004820
Government GrantsYesYesYesYes
EU Funding EligibleNoYesYesYes
Visa Details
Has Startup VisaYesYesYesYes
Processing Time60459060
Min Investment--$0$30K
E-ResidencyNoNoNoNo
Digital Nomad VisaYesYesYesYes
Residency Details
Visa Programs Available2233
Citizenship Timeline101057
Dual CitizenshipNoNoYesYes
Immigration Score5787
Tax Res. Details
Tax Residency Days183183183183
Personal Tax Top Rate35474835
Territorial TaxationNoNoNoNo
Special Tax RegimeNoYesYesYes
Exit TaxNoYesYesNo
Practical Details
Banking Difficultydifficulteasymoderatemoderate
100% Foreign OwnershipNoYesYesYes
Company Formation30735
Virtual Office OKNoYesYesYes
Remote Work Details
Nomad VisaYesYesYesYes
Tourist Workgray_areagray_areagray_areagray_area
Tourist Visa Days30909090
PE Risk Levellowmoderatemoderatemoderate
Days Before Tax Res.18318318360
Internet Speed252208565
Coworking/mo$100$250$180$180
Family Details
Safety Index55728280
Int'l SchoolsYesYesYesYes
Homeschoolinglegallegal_with_restrictionslegal_with_restrictionslegal_with_restrictions
Healthcare Quality55827675
Cost of Living32556870
Ecosystem Details
Unicorns8561
English Business EnvNoNoYesYes
Talent Pool Quality50707260

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