Doing Business in Indonesia VS Portugal – A Comparison
Entrepreneurs and investors looking to expand their businesses often face a tough decision: choosing the right country to invest in. Indonesia and Portugal are two attractive destinations, each offering unique advantages and opportunities. While Indonesia is praised for its competitive business landscape, high quality of life, and lower costs for setting up smaller businesses, Portugal stands out for its strategic location in Europe, favorable tax incentives, and robust digital infrastructure. This article explores the key factors that make these two countries appealing to investors.
Key Comparison Points
Business Environment
- Indonesia: Offers political stability with a growing economy supported by government initiatives to attract foreign investment.
- Portugal: Boasts a stable political climate with a strong legal framework and EU membership providing access to European markets.
Taxation
- Indonesia: Corporate tax rate is 22%, with various tax incentives for priority sectors like manufacturing and technology.
- Portugal: Corporate tax rate is 21%, and the country provides attractive tax incentives for foreign investors, including the Non-Habitual Resident (NHR) program.
Ease of Company Incorporation
- Indonesia: The incorporation process is straightforward with government-backed digital platforms to simplify business registration.
- Portugal: Known for its efficient digital infrastructure, Portugal offers a seamless company incorporation process, particularly for startups.
Cost of Living and Business Operations
- Indonesia: Lower operational costs, affordable office spaces, and competitive living expenses make it ideal for small to medium-sized businesses.
- Portugal: While operational costs are higher than Indonesia, Portugal’s living expenses are relatively affordable compared to other European countries.
Access to Markets
- Indonesia: Strategic location in Southeast Asia with access to growing ASEAN markets and strong trade agreements with neighboring countries.
- Portugal: Gateway to European markets with excellent global connectivity and trade agreements through its EU membership.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Portugal |
Business Environment |
Political stability and growing economy |
Stable political climate and EU membership |
Corporate Tax Rate |
22% |
21% |
Capital Gains Tax |
Competitive rates with incentives for priority sectors |
Attractive exemptions under the NHR program |
Ease of Incorporation |
Simplified digital registration process |
Efficient incorporation process with robust digital infrastructure |
Business Costs |
Lower operational and living costs |
Higher operational costs but affordable living expenses |
Market Access |
Access to ASEAN markets and trade agreements |
Gateway to European markets through EU membership |

Benefits of Choosing 3E Accounting
Whether you’re looking to register a company in Indonesia or start a business in Indonesia, 3E Accounting offers unparalleled expertise and support. From seamless incorporation to comprehensive business solutions, our team ensures a hassle-free experience for entrepreneurs and investors.
Explore our Indonesia company incorporation services package to understand how we can assist you. For more guidance, check out our guide on registering a company in Indonesia. Ready to take the next step? 3E Accounting is here to help. Contact us today to get started.
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Frequently Asked Questions
Indonesia offers political stability and economic growth driven by pro-investment policies. Portugal benefits from EU membership and a strong legal framework.
Portugal offers tax incentives through the Non-Habitual Resident (NHR) program, while Indonesia provides industry-specific tax incentives for those starting a business in Indonesia.
Both countries have streamlined processes, but Portugal is praised for its robust digital infrastructure. Indonesia also offers simplified registration, supported by our company registration in Indonesia guide.
Indonesia connects businesses to fast-growing ASEAN markets, while Portugal serves as a gateway to the EU. For those targeting Asia, company incorporation in Indonesia offers strong trade opportunities.
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.