Doing Business in Malaysia VS Portugal – A Comparison
Entrepreneurs deciding between Malaysia and Portugal for business expansion often weigh cost, regulations, and market access. Starting a business in Malaysia is known for affordability, supportive government policies, and regional market access. Portugal, while more expensive, offers entry into the European Union, a skilled workforce, and a startup-friendly environment. This article compares key areas to help you choose the right fit.
Portugal: Portugal is politically stable and ranks high for ease of doing business in the EU, but compliance and bureaucratic delays may occur in certain industries.
Taxation
Malaysia: Corporate tax is 24%, with no capital gains tax. Investors often use company incorporation services to benefit from tax incentives.
Portugal: Portugal imposes a 21% corporate tax rate, plus surtaxes that bring the effective rate higher. Capital gains are taxed and double-tax treaties apply.
Ease of Company Incorporation
Malaysia: Malaysia offers digital company setup and efficient approvals. The company incorporation in Malaysia process is clear and fast.
Portugal: Portugal has improved startup procedures, but non-EU founders may face additional steps such as visa and translation requirements.
Cost of Living and Business Operations
Malaysia: Malaysia offers affordable operations—especially in cities like Kuala Lumpur. Refer to this guide to setting up businesses in Malaysia for more cost breakdowns.
Portugal: Portugal’s costs are higher overall, though still lower than many Western EU countries. Lisbon and Porto have seen increasing rental prices.
Access to Markets
Malaysia: Positioned in ASEAN, Malaysia provides access to over 600 million consumers and is part of RCEP and CPTPP. Businesses using our services benefit from strong regional logistics and trade facilitation.
Portugal: Portugal grants direct access to the EU single market and global trade via its Atlantic ports, though distance from Asia adds logistics costs for that region.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
Malaysia
Portugal
Business Environment
Stable legal framework, pro-investment policies
Strong EU reputation, occasional bureaucracy
Corporate Tax Rate
24%
21% (plus surtaxes)
Capital Gains Tax
No
Yes
Ease of Incorporation
Fully digital, fast registration
Improved for locals, more steps for non-EU investors
Business Costs
Lower across office, labor, and utilities
Moderate to high, especially in urban centers
Market Access
ASEAN hub, RCEP, CPTPP access
Direct entry to EU market and global ports
Benefits of Choosing 3E Accounting
Selecting the right partner is crucial when it comes to starting a business in Malaysia. At 3E Accounting, we offer a comprehensive range of solutions designed to simplify the entire process of company incorporation in Malaysia. From ensuring compliance with local regulations to providing expert guidance tailored to your specific needs, we make the journey seamless.
To explore our services or discuss your business needs, contact 3E Accounting. With our strong presence in Malaysia and a proven track record, we are your trusted partner for success in Asia.
Ready to Expand into Malaysia? Choose 3E Accounting Today!
Stay Secure, Stay Successful With 3E Accounting Services
Malaysia’s incorporation is fully digital and efficient, while Portugal’s process may require more documentation. Read this Malaysia company registration guide for clarity.
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.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.