Bosnia and Herzegovina vs Portugal
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ง๐ฆ Bosnia and Herzegovina โ Entity & Cantonal Taxes
Bosnia and Herzegovina has one of the most fragmented tax systems in the world due to its Dayton Agreement structure. The two entities โ Federation of BiH (FBiH) and Republika Srpska (RS) โ have separate income tax, and FBiH further divides into 10 cantons that set their own rates. RS has a flat 10% income tax. FBiH has a 10% flat tax at the entity level but cantons add surtaxes of 0%โ30% of the income tax. Brcko District has its own tax administration. VAT and customs are administered federally.
๐ต๐น Portugal โ Municipal & Regional Taxes
Portugal's 18 districts and 308 municipalities levy a municipal IRS surcharge (Derrama Municipal) of up to 1.5% of taxable income on residents. Municipalities also apply the Derrama Municipal on corporate profits (up to 1.5%). Madeira and Azores autonomous regions have their own lower tax regimes: Madeira has a 14.7% corporate rate in the MIBC (international business centre). Real estate transfer taxes (IMT) are municipal. The NHR (Non-Habitual Resident) regime attracted many foreigners until 2024 when it was replaced by IFICI.
Bosnia and Herzegovina vs Portugal: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ต๐น Portugal has a higher top income tax rate (10โ13% vs 13.25โ48%). ๐ง๐ฆ Bosnia and Herzegovina is more favourable for high earners.
๐ VAT/Sales Tax: Portugal has a higher consumption tax (17% vs 6โ23%).
๐ข Corporate Tax: ๐ง๐ฆ Bosnia and Herzegovina offers a lower corporate rate (10% vs 19%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ฆ Bosnia and Herzegovina taxes investment gains at a lower rate (10% vs 28%), benefiting investors.