Denmark vs Portugal
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฉ๐ฐ Denmark โ Municipal Income Tax
Denmark's 98 municipalities set local income tax (kommuneskat) at ~22.8%โ27.8%. The national state tax adds 15% (top bracket). Combined rates including AM contribution (8% of gross) make Denmark one of the world's highest-tax nations at ~55โ56% effective top. Church tax (~0.7%) applies to members. Property value tax is nationally set.
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.
Denmark vs Portugal: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ฐ Denmark has a higher top income tax rate (~55.9% vs 13.25โ48%). ๐ต๐น Portugal is more favourable for high earners.
๐ VAT/Sales Tax: Denmark has a higher consumption tax (25% vs 6โ23%).
๐ข Corporate Tax: ๐ต๐น Portugal offers a lower corporate rate (19% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐ต๐น Portugal taxes investment gains at a lower rate (28% vs 42%), benefiting investors.