Portugal vs Indonesia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
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.
๐ฎ๐ฉ Indonesia โ Provincial & Regional Taxes
Indonesia's 38 provinces and 514 regencies/cities levy their own taxes. Provinces charge vehicle tax (Pajak Kendaraan Bermotor) at 1%โ2%, vehicle transfer tax, and fuel tax (Pajak Bahan Bakar Kendaraan). Regencies/cities levy hotel tax (10%), restaurant tax (10%), entertainment tax (0%โ75%), and land/building tax (Pajak Bumi dan Bangunan - P2). The 2022 tax reform (Harmonisasi Peraturan Perpajakan) unified many tax procedures. E-commerce platforms must now collect VAT.
Portugal vs Indonesia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ต๐น Portugal has a higher top income tax rate (13.25โ48% vs 5โ35%). ๐ฎ๐ฉ Indonesia is more favourable for high earners.
๐ VAT/Sales Tax: Portugal has a higher consumption tax (6โ23% vs 12%).
๐ข Corporate Tax: ๐ต๐น Portugal offers a lower corporate rate (19% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ฉ Indonesia taxes investment gains at a lower rate (2.5% vs 28%), benefiting investors.