Doing Business in the United Kingdom VS Portugal – A Comparison
Entrepreneurs deciding between starting a business in the United Kingdom or Portugal face a balance between digital efficiency and lifestyle perks. Portugal offers tax-friendly regimes and an attractive climate, while 3E Accounting highlights the UK’s legal clarity, global market reach, and smooth digital incorporation. This comparison lays out the major differences to support your decision.
The United Kingdom: The UK offers a pro-business legal system, strong contract enforcement, and a stable political landscape, creating confidence for investors.
Portugal: Portugal is considered stable within the EU, but bureaucracy and slower licensing procedures can delay market entry for new businesses.
Taxation
The United Kingdom: The corporate tax rate is 25%, with deductions available for R&D and capital investment. Reliefs support innovation and reinvestment.
Portugal: Portugal applies a 21% corporate tax rate, with surcharges for higher income brackets. Tax incentives exist in certain regions, including Madeira and the Azores.
Portugal: Portugal offers online registration, but processes such as opening a bank account and appointing a fiscal representative can slow down the setup for foreign investors.
Cost of Living and Business Operations
The United Kingdom: Costs are moderate to high depending on region, but cost-efficient company setup options and regional hubs help reduce operational expenses.
Portugal: Portugal has a lower cost of living, making it appealing for startups and remote-based teams. Office rent and labor are more affordable than in Western Europe.
Access to Markets
The United Kingdom: Despite Brexit, the UK maintains global trade relationships. Businesses benefit from reliable logistics and public business finance support.
Portugal: Portugal has full access to the EU market, and its Atlantic location supports trade with Africa and South America. However, global outreach is not as broad as the UK’s.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
United Kingdom
Portugal
Business Environment
Stable, transparent, legally efficient
EU member, but slower bureaucracy
Corporate Tax Rate
25%
21% (plus surcharges)
Capital Gains Tax
Yes
Yes
Ease of Incorporation
Fully online, fast process
Partially digital, with manual steps
Business Costs
Moderate to high (varies by city)
Low (cost-effective for SMEs)
Market Access
Global, diversified trade network
EU, Portuguese-speaking markets
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
Yes. The UK offers a fast, digital setup process, while Portugal has additional manual steps. Learn more from this guide on starting a business in the United Kingdom.
Company registration in the UK is completed online in less than 48 hours. Portugal’s process is partly online but still requires local bank accounts and representation.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.