Portugal vs Sao Tome and Principe
Tax Rate Comparison
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π° Personal Income Tax Calculator
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π΅πΉ 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.
πΈπΉ Sao Tome and Principe β Sao Tome & Principe Tax System
Sao Tome and Principe is a small island nation in the Gulf of Guinea with progressive income tax up to 25%. IVA (VAT) is 15%. The economy has long been dominated by cocoa exports and foreign aid. Offshore oil potential (Joint Development Zone with Nigeria) has not yet materialized in significant production. The country joined the EITI (Extractive Industries Transparency Initiative).
Portugal vs Sao Tome and Principe: Key Tax Differences (2026)
π° Income Tax: π΅πΉ Portugal has a higher top income tax rate (13.25β48% vs 0β25%). πΈπΉ Sao Tome and Principe is more favourable for high earners.
π VAT/Sales Tax: Portugal has a higher consumption tax (6β23% vs 15%).
π’ Corporate Tax: π΅πΉ Portugal offers a lower corporate rate (19% vs 25%), which can influence business location decisions.
π Capital Gains: πΈπΉ Sao Tome and Principe taxes investment gains at a lower rate (25% vs 28%), benefiting investors.