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Portugal vs Netherlands
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡΅πŸ‡Ή Portugal
vs
πŸ‡³πŸ‡± Netherlands
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
13.25–48%
48% top rate; further bracket relief phasing in
No change
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
6–23%
23% standard; food VAT reductions under review
No change
9–21%
Reduced 9% rate under review
No change
Corporate Tax Rate
Corporate Tax Rate
19%
Gradual reduction to 15% by 2030; 19% for 2026
β–Ό -2.0pp vs 2025
19–25.8%
Stable; Pillar Two global minimum tax applies
No change
Capital Gains Tax
Capital Gains Tax
28%
28% flat; IFICI regime for new residents
No change
~38%
Box 3 new regime: actual return basis
No change
Social Security & Payroll
Social Security / Payroll
~34.75%
Stable; pension reform discussions ongoing
No change
~28%
AOW/WW/WIA contributions ceiling raised
β–² +0.4pp vs 2025
State, Regional & Local Taxes

πŸ‡΅πŸ‡Ή Portugal β€” 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.

πŸ‡³πŸ‡± Netherlands β€” Municipal & Water Board Taxes

The Netherlands is a unitary state β€” income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Portugal vs Netherlands: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡³πŸ‡± Netherlands has a higher top income tax rate (13.25–48% vs 9.32–49.5%). πŸ‡΅πŸ‡Ή Portugal is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Portugal has a higher consumption tax (6–23% vs 9–21%).

🏒 Corporate Tax: πŸ‡΅πŸ‡Ή Portugal offers a lower corporate rate (19% vs 25.8%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡Ή Portugal taxes investment gains at a lower rate (28% vs 38%), benefiting investors.

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