Portugal and Greece are both Mediterranean gems, renowned for their warm climates and stunning landscapes. The countries don’t only draw in tourists year-round, but also entrepreneurs who are looking for European destinations for their startups.
While both have their own advantages, they do differ somewhat in terms of their taxes, visa requirements and cost of living to name a few. These differences could make one more appealing depending on your own preferences, so let’s take a look at them side-by-side.
Are Portugal And Greece Conducive To Startups?
Portugal’s startup scene is on the rise, increasing by 16% from 2023 to 2024 as reported by the Portugal News. According to Startup Portugal, a government-backed initiative, there are currently 4,073 startups. Entrepreneurs are mainly drawn to the popular cities of Lisbon and Porto.
The country boasts plenty of accelerators, incubators and funding opportunities especially for those in the tech industry, making it a hotspot for startups.
Greece’s startup ecosystem continues to develop, especially in Athens. Similarly to Portugal, the country has seen a rapid increase in tech-based startups in recent years.
Taxes
Portugal: The corporate tax rate in Portugal is 21%, but small to medium size businesses (SMEs) can have reduced rates. The personal tax rate can go up to 48%. The country does offer tax benefits for example, the Non-Habitual Resident (NHR) scheme offers tax reductions to expats for up to 10 years.
Greece: Here, the corporate tax rate is 22% with the personal tax rate reaching 44%. They also offer some tax schemes where tech startups can enjoy reduced rates.
Visa Requirements
Portugal: For those who have European Union citizenship, they are free to work and live in Portugal with no restrictions. Non-EU residents can apply for a D7 Visa or a Startup Visa for entrepreneurs. There are certain Digital Nomad visas that can allow non-EU citizens to work there remotely.
Greece: Similarly to Portugal, European Union citizens can work and live in Greece. For non-EU nationals, they can apply for the Greece Golden Visa if they are able to invest €250,000 in real estate. They also have a Digital Nomad visa available for non-EU remote workers, but there aren’t as many entrepreneur-specific options available.
Cost Of Living
For both Portugal and Greece, this will vary depending on which area you choose to live and work in. Generally speaking, the major cities are more costly while outlying areas are usually more affordable.
Portugal: If you decided on a main city such as Lisbon, your monthly expenses can range from €1,500 to €2,500. If you can live in smaller cities like Porto or Braga, rental accommodation is more cost-effective.
Greece: In a main city like Athens, your monthly expenses can range from €1,200 to €2,000, which is lower than Portugal’s. Rental prices are known to significantly decrease outside of the urban hubs, making the overall cost of living slightly more affordable than in Portugal.
Language
One of the first things to consider as a foreign entrepreneur is the potential language barrier in your desired location, if you are not able to speak their language.
Portugal: You will find that English is widely spoken in urban areas and in business settings. However, an understanding of Portuguese is required for all official paperwork, and in smaller towns where English is not as welcomed.
Greece: Likewise, English is spoken in the cities especially where tourists visit, but legal activities and paperwork are all conducted in Greek.
Work Culture
Portugal: The Portuguese emphasise a healthy work-life balance. Here, business communication is a bit more relaxed and nationals like to focus on building relationships.
Greece: In Greece, personal connections and networking are greatly valued. It is important to note that government processes are sometimes slower which can require patience and persistence on the entrepreneur’s part.
The Process Of Setting Up Your Business
Portugal: Setting up a company is a fairly straightforward, uncomplicated process. If you complete your application with the Empresa na Hora, you can be registered in one day. The main steps will be to choose your desired business structure, receive your Portuguese Tax ID (NIF) and register with the Portuguese Commercial Registry.
Greece: Here, the process is a bit more bureaucratic. Similarly to Portugal, you will choose your business structure, obtain your Greek Tax ID (AFM), register with the General Commercial Registry and open up a business bank account.
Overall, Portugal’s process is quicker due to its streamlined process.
Portugal Or Greece: Where Should You Start A Business?
Ultimately, the decision will depend on you as the entrepreneur and what you are looking for. For startups and expats specifically, Portugal may be the more desirable option due to its startup reputation and diverse visa options, as well as the Non-Habitual Resident (NHR) tax scheme.
On the other hand, Greece offers a more affordable cost of living with competitive taxes, which is attractive for entrepreneurs who are just starting out.
Either way, both countries are a great option to consider. Best of luck!
