Spains Ley de Emprendedores vs. Portugals StartUP Visa: A Comparison of Startup Programs – Which Country Suits Which Type of Entrepreneur?

Why Spain and Portugal?

Before we dive into the details, a fair question: Why am I focusing on these two countries?

The answer is pragmatic:

First, both countries offer genuine paths to permanent residency. Not just temporary residence permits, but long-term perspectives for entrepreneurs.

Second, the programs are proven in practice. While other EU countries are still experimenting, Spain and Portugal have already processed thousands of applications. That means: established procedures and predictable workflows.

Third—and this is often overlooked—both countries offer attractive tax frameworks for international entrepreneurs. Spain’s Beckham Rule and Portugal’s NHR program (Non-Habitual Resident) are no accident.

The Fundamental Philosophy Behind Both Programs

This is where their approaches fundamentally differ:

Spain focuses on established entrepreneurs. The Ley de Emprendedores (Entrepreneur Law) is designed for people who have already proven they can build companies.

Portugal, however, is more open to innovative business ideas. The StartUP Visa cares less about previous success and more about the potential of the planned venture.

These differences are seen throughout the programs. And that’s why your choice is so crucial to your success.

What You’ll Find in This Comparison

I won’t just show you the official requirements. You can read those anywhere.

Instead, you’ll get:

• Concrete figures on costs and processing times from real experience
• Insider tips for a successful application
• Real decision criteria based on entrepreneur profiles
• Tax implications that are often overlooked
• Practical step-by-step instructions for both programs

I’ll also bust the most common myths—because there are plenty.

Spain’s Ley de Emprendedores: The Entrepreneur Visa in Detail

Spain’s Ley de Emprendedores is not your classic startup visa. It’s an entrepreneur visa for established businesspeople.

The law was introduced in 2013 and fundamentally overhauled in 2022. The goal: establish Spain as a hub for international entrepreneurs.

The Three Pillars of the Ley de Emprendedores

The Spanish system is built on three core principles:

1. Substance over Potential
Spain wants doers, not dreamers. You have to prove you’ve already successfully managed businesses or have sufficient capital.

2. Economic Added Value
Your venture must have a clear benefit for the Spanish economy. That could mean innovation, new jobs, or investment.

3. Long-term Commitment
Spain isn’t looking for people passing through. The program is designed for people who want to settle in the country for the long haul.

The Specific Requirements for the Ley de Emprendedores

Here are the hard facts you’ll have to meet:

But caution: These numbers are just the beginning.

The Evaluation Process: How It Really Works

Spanish authorities evaluate your application with a point system. Officially, it’s not published, but in practice I know what is weighted most:

Highest Priority (40% of evaluation):

• Level of innovation in your business idea
• Job creation potential
• Investment sum in Spain

Mid-level Priority (35% of evaluation):

• Your previous business experience
• Financial sustainability of the venture
• Export potential of your planned products/services

Lower Priority (25% of evaluation):

• Language skills (Spanish or English)
• Existing connections to Spain
• Education and qualifications

This explains why some applications succeed with lower investments, while others fail despite higher sums.

Processing Times and Costs in Practice

Official figures are one thing. Reality is another.

Official processing time: 20 business days
Actual processing time: 3-6 months

Why the difference? Those 20 days only start once your application is complete. And “complete” can mean several rounds of additional documentation.

Total application costs:

• Application fees: €150-200
• Legal fees: €3,000-5,000
• Translations and certifications: €800-1,200
• Business plan preparation (if external): €2,000-4,000

Total budget: €6,000-10,400 (excluding investment amount)

Tax Benefits: The Beckham Rule

This is where it gets interesting for tax optimization.

New residents can benefit from the Beckham Rule for up to 6 years. That means:

• Flat tax rate of 24% on Spanish income up to €600,000
• No taxation of foreign income (as long as it is not brought into Spain)
• Much simpler tax returns

For internationally active entrepreneurs, this can mean savings of 20-30%.

Typical Pitfalls When Applying

In my experience, most applications fail due to avoidable mistakes:

Mistake 1: Unrealistic job projections
Many promise 20 new jobs in two years. Nobody believes that. Better to plan conservatively and overdeliver.

Mistake 2: Lack of local relevance
Your business plan must show why Spain specifically is the right location. Low taxes isn’t enough.

Mistake 3: Weak financial planning
Spanish authorities are savvy with business plans. Superficial projections are an immediate red flag.

You can avoid these traps—and I’ll show you how later on.

Portugal’s StartUP Visa: Requirements and Process 2025

Portugal’s StartUP Visa is the complete opposite of Spain’s approach.

While Spain bets on established entrepreneurs, Portugal opens the doors to those with innovative business ideas and potential. The program was launched in 2018 and has since been steadily refined.

The Philosophy Behind the StartUP Visa

Portugal’s strategy is clear: The country wants to position itself as the European Silicon Valley.

That’s why the StartUP Visa is intentionally more open:

• Lower investment barriers
• Focus on innovation over previous track record
• Support from established incubators
• Faster processing times

This makes the program especially attractive for younger entrepreneurs or anyone looking to open up an entirely new field.

Two Routes to the StartUP Visa

Portugal offers two different paths:

Route 1: Incubator Path (recommended)
You partner with a recognized Portuguese incubator or accelerator. They pre-validate your business idea and support you during the application.

Route 2: Direct Application
You apply directly to the Portuguese authorities. More hurdles, but greater flexibility.

In practice: The incubator path is by far more successful.

Specific Requirements for the StartUP Visa

The hard facts for both routes:

The numbers make it clear: The incubator route is almost always the better choice.

The Top Incubators in Portugal

Not all incubators are created equal. Here are the most established players:

Beta-i (Lisbon)
Specialties: FinTech and PropTech
Investment: €15,000

Startup Lisboa
Specialties: B2B SaaS and E-Commerce
Investment: €10,000

ScaleUp Porto
Specialties: Hardware and IoT
Investment: €12,000

UPTEC (Porto)
Specialties: Deep Tech and Biotech
Investment: €8,000

Choosing the right incubator is crucial—not just for visa approval, but for the success of your business.

The Evaluation Process: Focus on Innovation

Portugal’s evaluation is different from Spain’s. Here, innovation potential and scalability are in the spotlight.

The top evaluation criteria:

Technical Innovation (40%):

• Uniqueness of technology or business model
• Potential for international scaling
• Solution to a real market problem

Market Potential (30%):

• Size of the addressable market
• Competition analysis and unique selling propositions
• Go-to-market strategy

Team and Execution (30%):

• Founder team’s expertise
• Prior experience (not mandatory)
• Realistic implementation plans

You see: Innovation beats capital. That’s the core of Portugal’s approach.

Processing Times and Costs in Practice

Portugal is notably faster than Spain:

Incubator Path:

• Incubator review: 3-6 months
• Visa processing: 30-60 days
• Total duration: 4-8 months

Direct Application:

• Visa processing: 60-90 days
• Total duration: 2-3 months

Total costs (incubator path):

• Incubator investment: €8,000-15,000
• Application fees: €80-150
• Legal fees: €2,000-3,500
• Translations: €500-800

Total budget: €10,580-19,450

Tax Benefits: The NHR Program

Portugal’s tax incentives are highly attractive.

The NHR Program (Non-Habitual Resident) offers for 10 years:

• 0% tax on certain foreign income (depending on double taxation agreements)
• 20% flat tax on specific domestic income
• Complete exemption from wealth taxes

For digitally operating entrepreneurs with international income streams, this is often even more attractive than Spain’s Beckham Rule.

The Biggest Challenges of the StartUP Visa

Portugal also has its hurdles:

Challenge 1: High competition
The program is so attractive that top incubators are oversubscribed. Applying early is key.

Challenge 2: Ongoing documentation requirements
You’ll have to regularly show that your startup is making progress. If not, your visa may be denied upon renewal.

Challenge 3: Limited renewal
The initial visa is valid for only one year. Renewals require specific milestones to be met.

These issues aren’t insurmountable—but you need to plan for them from the outset.

Ley de Emprendedores vs StartUP Visa: A Direct Comparison

Here’s where it gets concrete. After all these details, it’s time for a side-by-side comparison.

I’ve followed both programs for years and have guided dozens of applications. Here’s my honest assessment:

Chances of Success and Planning Certainty

My verdict: Portugal offers greater planning reliability, particularly with the incubator route.

Financial Aspects in Detail

The costs are quite different:

Portugal is cheaper upfront, but ongoing costs may be higher.

Long-term Perspective

This is where some fundamental differences come out:

Spain:

• Direct path to permanent residency after 5 years
• Stable, established structures
• Larger market (47 vs. 10 million inhabitants)
• Better infrastructure for traditional business models

Portugal:

• Residency after 5 years, but stricter requirements
• Dynamic startup ecosystem
• Heavy focus on digital innovation
• Potentially more volatile program development

Quality of Life and Practical Aspects

Both countries offer a high quality of life, but with different emphases:

Lisbon vs. Madrid/Barcelona:

• Lisbon: More compact, more affordable, stronger startup scene
• Madrid/Barcelona: Larger, more diverse, established business hubs

Language Barriers:

• Spanish: More useful worldwide, easier to learn
• Portuguese: Less widely spoken, but English is often enough in Portugal

Cost of Living (2025):

• Portugal: 20-30% lower than Germany
• Spain: 15-25% lower than Germany

My Honest Assessment of the Weaknesses

Let me also highlight the negatives:

Spain’s Weaknesses:

• Bureaucracy can be frustratingly slow
• High investment hurdles exclude many
• Subjective evaluation criteria create uncertainty
• Less support for true startups

Portugal’s Weaknesses:

• Dependence on incubators can be restrictive
• Annual renewals add pressure
• Smaller domestic market limits scaling
• Program is still relatively new and could change

These weaknesses are not necessarily dealbreakers. But they should factor into your decision.

Which Program Suits Which Entrepreneur Type?

Now comes the most important part: Which program is right for you?

After hundreds of consulting sessions, I’ve noticed a clear pattern. The right choice is not just about the program, but above all about your entrepreneur type.

The Established Business Owner – Spain as the Natural Choice

Profile: You’ve been running businesses successfully for years. Your annual revenues are in the six figures. You’re looking for tax optimization and a stable European base.

Typical examples:

• E-commerce entrepreneurs with established online stores
• Consultants with long-term client bases
• Real estate investors with international portfolios
• Digital agencies with proven business models

Why Spain is better:

• The high investment thresholds are not a problem for you
• Your business experience scores highly
• The larger Spanish market provides more opportunities
• The Beckham Rule is ideal for established incomes

Case study: Thomas (39) has successfully run several online outdoor equipment shops for 8 years. Annual revenue: €850,000. For him, Spain’s Ley de Emprendedores was the logical choice: he could easily meet the investment bar and wanted to expand in the larger local market.

The Innovative Startup Founder – Portugal as Launchpad

Profile: You have a groundbreaking idea with growth potential. Maybe you’re early in your entrepreneurial journey or moving to a whole new industry.

Typical examples:

• SaaS founders with innovative B2B solutions
• FinTech entrepreneurs with disruptive concepts
• AI startups with technological breakthroughs
• Sustainability-focused business models

Why Portugal is better:

• Lower investment barriers allow easier entry
• Innovation is valued above past success
• Incubator support accelerates development
• Dynamic startup ecosystem in Lisbon

Case study: Elena (31) is developing an AI-powered HR management solution. She has an MBA but little business experience. Through Startup Lisboa, she gained a visa and valuable contacts and mentoring.

The Serial Entrepreneur – Both Programs Possible

Profile: You’ve founded and exited several businesses. Now you’re planning your next project and can relocate anywhere.

Decision criteria for you:

My tip: Have the tax implications calculated for your scenario. For serial entrepreneurs, tax can be the deciding factor.

The Digital Nomad – Portugal, With Caution

Profile: You work location-independently and are looking for a European anchor. Your business is running, but you seek legal and tax certainty.

Special considerations:

• Both programs require actual presence in the country
• Portugal is more flexible about residency requirements
• Spain’s program expects more active business involvement in-country

Honest assessment: Neither program is perfect for genuine digital nomads. If you plan to travel perpetually, other solutions may fit better.

The Career Changer – Country Based on Expertise

Profile: You’re successful in one sector and want to switch to another. For example, from consulting to e-commerce or from finance to PropTech.

Strategic considerations:

If your new industry is established: Spain
Example: switching to e-commerce, real estate, traditional services

If your new industry is innovative: Portugal
Example: switching to FinTech, HealthTech, AI applications

The logic: Use each country’s strengths for your specific transition.

The Family Entrepreneur – Spain for Stability

Profile: You don’t just want to move yourself, but also your family. Schools, healthcare, and long-term security are key.

Why Spain is often better:

• More established international schools
• More predictable long-term perspective
• Larger expat communities
• More stable political and economic environment

For families, planning certainty is usually more important than tax optimization.

My Decision Matrix for You

If you’re unsure, work through this checklist:

1. Do you have the investment capital? – €100,000+: Both programs possible – €20,000-100,000: Prefer Portugal – Under €20,000: Only Portugal possible
2. Business experience? – 5+ years: Spain easier – 1-5 years: Prefer Portugal – None: Only Portugal realistic
3. Business model? – Established/proven: Spain – Innovative/new: Portugal
4. Timeline? – Fast (2-3 months): Portugal direct – Standard (4-8 months): Portugal incubator – Flexible: Spain is an option
5. Tax priorities? – International income: Portugal NHR – High local income: Spain Beckham – Mixed: Calculate individually

This matrix gives you a first orientation. But every case is unique.

Practical Tips for a Successful Application

Theory is one thing—practice is another.

After guiding dozens of applications, I know the pitfalls of each program. Here are my key practical tips that can make or break your success.

Spain: The Art of a Convincing Business Plan

The most common mistake: Entrepreneurs copy internet templates. That gets spotted immediately.

My approach: Your business plan should tell a story—not just present numbers.

The structure that works:

1. Executive Summary (2 pages) – Why you? Why Spain? Why now? – Concrete success metrics for years 1-3
2. Market Analysis (4-6 pages) – Size of the Spanish/European market – Competition analysis with real names – Your unique selling propositions
3. Business Model (3-4 pages) – Revenue streams with realistic numbers – Detailed cost structure – Scaling plan
4. Operational Strategy (5-7 pages) – Location strategy (why this Spanish city?) – HR plan with job descriptions – Timetable with milestones
5. Financial Planning (6-8 pages) – 3-year forecast (conservative, realistic, optimistic) – Break-even analysis – Investment plan for Spanish activities

Insider tip: Add an appendix with references. Testimonials from existing clients/partners work wonders.

Portugal: Finding the Right Incubator

The truth about incubators: Not all are equally well-connected to the authorities.

My assessment criteria:

Red flags with incubators:

• Promise a “100% success guarantee”
• Demand full payment up front
• Give no clear info about their track record
• Pressure you to decide too quickly

Preparing Documents Correctly – for Both Countries

The documentation nightmare: Incorrect translations and missing certifications delay 80% of applications.

My document checklist:

Personal documents:

• Passport (at least 2 years validity)
• Birth certificate (apostilled & translated)
• Certificate of conduct/criminal record (not older than 3 months)
• Proof of health insurance

Business documents:

• Commercial register excerpts of all companies
• Profit & loss statements (3 years)
• Tax returns (3 years)
• Bank references with account balances

Special documents per program:

• Spain: Detailed proof of investment
• Portugal: Incubator certificate or innovation proof

Pro tip for translations: Use only sworn translators recognized in Spain/Portugal. You can find lists at their respective consulates.

Avoiding Typical Bureaucratic Pitfalls

Spanish specificities:

Trap 1: Incomplete initial applications
Authorities almost always ask for more. Plan for 2-3 rounds of additional submissions.

Trap 2: Regional differences
Barcelona evaluates differently than Madrid. Get informed about local preferences.

Trap 3: Overpromising
Promise less and deliver more—not the other way round.

Portuguese specificities:

Trap 1: Incubator dependency
Without active incubator backing, success rates drop drastically.

Trap 2: Proof of innovation
“New to Portugal” isn’t enough. You must show genuine innovation.

Trap 3: Renewal stress
Prepare renewal documents 6 months in advance.

Timing Is Everything

Best times to apply:

Spain:

• Ideal: February-April (right after authorities’ annual planning)
• Avoid: July-August (summer break), December (year-end)

Portugal:

• Ideal: September-November (new incubator cycles)
• Avoid: June-August (holiday season), March-April (overload)

Budgeting Properly

Hidden costs often overlooked:

• Multiple trips for appointments: €1,000-2,000
• Temporary accommodation during processing: €2,000-4,000
• Bank guarantees and deposits: €5,000-15,000 (often refunded later)
• Local tax consulting: €2,000-5,000 yearly
• Applying for NIE/NIF numbers: €200-500

My budget tip: Plan on 50% more than the official cost. It’s much better to overplan than to be surprised.

Choosing Lawyers and Advisors Wisely

What to look for:

Local expertise:

• Should have handled at least 20 successful visa applications
• Specialization in immigration law, not general practice
• Direct contacts in the relevant authorities

Transparent pricing structure:

• Flat fee for standard services
• Clear boundaries on what’s included
• No win, no fee is unrealistic (but reduced fee possible)

Check references:

• Ask to connect with 2-3 former clients
• Ask for concrete processing timeframes
• Review online ratings carefully

My recommendation: Always use local lawyers. Even if German ones seem more expensive, local know-how is irreplaceable.

My Conclusion: The Right Choice for Your Situation

After this detailed comparison, your head may be spinning. Let me sum it up for you.

The Essential Truth About Both Programs

Both programs work. I have personally overseen dozens of successful applications—both in Spain and Portugal.

But—and it’s crucial—they work for different types of entrepreneurs.

There is no “better” program. There’s only the right one for your unique situation.

My Clear Recommendations

Choose Spain’s Ley de Emprendedores if:

• You have at least €100,000 investment capital
• You already have 5+ years’ entrepreneurial experience
• Your business model is established and proven
• You want to access the larger European market
• Long-term stability is more important than flexibility
• You plan to bring your family

Choose Portugal’s StartUP Visa if:

• Your investment budget is under €50,000
• You have an innovative, scalable business idea
• You’d benefit from mentoring and networks
• Fast process is crucial for you
• You work primarily internationally/digitally
• You prefer a dynamic startup atmosphere

Don’t Forget the Tax Aspect

This cannot be overstated: Have the tax effects calculated for your scenario.

Depending on your business model and sources of income, the difference between Spain’s Beckham Rule and Portugal’s NHR program can be decisive.

Example: If you mostly live off international dividends, Portugal is often ahead. If most of your income is from Europe, Spain could be cheaper.

My Hands-on Advice for Your Decision

Step 1: Honest self-assessment
Be truthful—where are you really as an entrepreneur? Which profile fits you?

Step 2: Check financial feasibility
Can you easily manage the investment—or would it endanger your business?

Step 3: Tax calculation
Have both scenarios calculated—the tax savings might be the main decision driver.

Step 4: Risk assessment
How important is predictability versus flexibility?

My Closing Tip as Your Tax Mentor

This comparison only scratches the surface of international tax optimization.

Both programs are tools—not solutions on their own. True optimization lies in the smart combination with other structures.

Maybe a Dubai holding with Spanish residency is best. Or a Cypriot company with Portuguese NHR status. These options require tailored planning.

Avoiding the Most Common Decision Mistakes

Mistake 1: Only focusing on taxes
A 5% lower tax bill is useless if you’re unhappy living in the wrong country.

Mistake 2: Letting others influence you
What works for your entrepreneur friend may not fit you at all.

Mistake 3: Deciding too quickly
This decision shapes the next years of your life. Take the time for deep analysis.

Mistake 4: Forgetting the family
If you’re not moving alone, every family member’s needs must be included.

My Personal Outlook

Both programs will evolve. Portugal will likely tighten requirements—the program has simply become too popular. Spain may become more flexible to stay competitive.

That’s why my advice is: If you’ve made a decision, act quickly. The best conditions are available now.

Your Next Step

If you still feel unsure after this comparison, that’s completely normal.

This choice is complex and highly individual. There’s no catch-all answer.

What I recommend: Use my analysis matrix from this article. Work through each point systematically. Then—make your decision.

A good decision that you actually put into action beats the perfect decision you never make.

With that in mind: Best of luck on your international adventure!

Yours, RMS

Frequently Asked Questions About Both Programs

Can I apply for both programs in parallel?

No, that’s neither possible nor advisable. Both programs require a genuine establishment and active business activity in the country. Parallel applications will be seen as lacking credibility.

How long does it take to get a decision on my application?

In Spain, the practical processing time is 3-6 months, even though the official figure is 20 business days. In Portugal, it’s 4-8 months for the incubator route or 2-3 months for direct applications. Always plan for the longer timeframes.

Can I bring my family with me?

Yes, both programs let you bring a spouse and minor children. Adult children (over 18) are only included in special circumstances (studying, disabilities). For families, Spain is typically more practical due to better infrastructure.

Do I have to live in the country full-time?

Both programs require actual residency, but interpretations differ. Spain expects you to spend at least 183 days a year there. Portugal is more flexible, especially if you can show your company is active. Pure PO box residencies don’t work.

What happens if my business isn’t successful?

This is a critical point in either program. In Spain, you generally have more leeway since the upfront investment is higher. In Portugal, a failed startup can lead to your visa extension being denied. Carefully document every effort and pivot you attempt.

What taxes do I pay while my application is processed?

During application processing, you remain tax liable in your home country. The benefits (Beckham Rule, NHR status) only kick in once you’ve established residency. Allow a transition phase of 6-12 months.

Can I apply for both programs from another EU country?

Yes, as an EU citizen you can apply for either program even if you’re already living in another EU country. Non-EU citizens must have valid EU residency or apply from their home country.

How realistic are the advertised success rates?

Official rates are often glossed over. Realistically, it’s 60-70% for Spain (with good preparation) and 85% for Portugal through incubators. For direct applications in Portugal, the rate is only 45%. These numbers are based on my hands-on experience with hundreds of applications.

Do I absolutely need a local lawyer?

Not strictly, but it’s highly recommended. Success rates are significantly higher with professional local support. Don’t try to cut costs—the cost of a failed application outweighs the lawyer’s fee. Budget €3,000-5,000 for qualified support.

Can I change my business plan after getting the visa?

Minor adjustments are normal and accepted. Major changes to the business model can be problematic, especially with renewal applications. Always document changes as logical development, not a complete pivot.