Portugal or Malta: where should your business be based?
Portugal ranks higher in the index, =09 against =12. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
IRC is 19% for 2026, falling to 18% in 2027 and 17% from 2028. Small and medium companies pay 15% on the first €50,000. A municipal surcharge of up to 1.5% and a state surcharge of 3% to 9% on profit above €1.5 million can apply. VAT is 23% on the mainland.
The headline rate is 35%. Trading profits reach about 5% effective only through shareholder refunds on distribution. VAT is 18%.
Set-up
Empresa na Hora forms a company the same day at a registry counter for €360, with all partners present. Empresa Online costs €220 with pre-approved articles. Minimum capital is €1 per quota holder.
Registration can take 24 hours once the file is complete. Fees start at €100 and the annual return at €85, both rising with authorised capital.
On the ground
A company needs a registered office in Portugal and a certified accountant (contabilista certificado). Directors need not be resident, but each partner and director needs a Portuguese tax number (NIF).
A registered office in Malta and a company secretary are mandatory. Authorised capital must be at least €1,164.69, with 20% paid up.
Ownership
Since November 2025 the RCBE beneficial ownership register is open online only to those who show a legitimate interest, and every access is logged for five years. The declaration is due within 30 days of formation.
General public access to the beneficial ownership register was suspended after a November 2022 EU court ruling; others must show a legitimate interest.
Residence
An owner can apply for a D2 entrepreneur visa through a Portuguese company. The Golden Visa remains from €500,000 in a qualifying fund, but real estate no longer qualifies. Remote workers earning €3,680 a month can use the D8.
The Start-up Residence Programme requires at least €25,000 invested in a Malta company and a business plan approved by Malta Enterprise.
Living and working
Currency
Euro.
Euro.
Time zone
UTC+0, or UTC+1 in summer, on the mainland and Madeira.
UTC+1, or UTC+2 in summer.
Personal tax
Progressive IRS rates reach 48% on taxable income above €86,634 in 2026, plus a solidarity surcharge of 2.5% above €80,000 and 5% above €250,000. Gains on shares are usually taxed at a flat 28%.
Top rate 35% on income above €60,000 (single, 2026). Capital gains tax applies, but there is no inheritance or wealth tax.
Flights
Lisbon Humberto Delgado airport serves about 151 destinations in 52 countries and handled 36.1 million passengers in 2025.
Malta International Airport served 109 destinations in 2024; Delta flies to New York three times a week from June to October 2026.
Language
Maltese and English are official languages. The courts use Maltese, although Parliament can provide for the use of English.
Portugal vs Malta: common questions
Portugal: IRC is 19% for 2026, falling to 18% in 2027 and 17% from 2028. Small and medium companies pay 15% on the first €50,000. A municipal surcharge of up to 1.5% and a state surcharge of 3% to 9% on profit above €1.5 million can apply. VAT is 23% on the mainland. Malta: The headline rate is 35%. Trading profits reach about 5% effective only through shareholder refunds on distribution. VAT is 18%.
Portugal: Empresa na Hora forms a company the same day at a registry counter for €360, with all partners present. Empresa Online costs €220 with pre-approved articles. Minimum capital is €1 per quota holder. Malta: Registration can take 24 hours once the file is complete. Fees start at €100 and the annual return at €85, both rising with authorised capital.
Portugal: A company needs a registered office in Portugal and a certified accountant (contabilista certificado). Directors need not be resident, but each partner and director needs a Portuguese tax number (NIF). Malta: A registered office in Malta and a company secretary are mandatory. Authorised capital must be at least €1,164.69, with 20% paid up.
Portugal: Since November 2025 the RCBE beneficial ownership register is open online only to those who show a legitimate interest, and every access is logged for five years. The declaration is due within 30 days of formation. Malta: General public access to the beneficial ownership register was suspended after a November 2022 EU court ruling; others must show a legitimate interest.
Portugal: An owner can apply for a D2 entrepreneur visa through a Portuguese company. The Golden Visa remains from €500,000 in a qualifying fund, but real estate no longer qualifies. Remote workers earning €3,680 a month can use the D8. Malta: The Start-up Residence Programme requires at least €25,000 invested in a Malta company and a business plan approved by Malta Enterprise.
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