Sao Tome and Principe vs Spain
Tax Rate Comparison
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π° Personal Income Tax Calculator
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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).
πͺπΈ Spain β Autonomous Community & Municipal Taxes
Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econΓ³mico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.
Sao Tome and Principe vs Spain: Key Tax Differences (2026)
π° Income Tax: πͺπΈ Spain has a higher top income tax rate (0β25% vs 19β47%). πΈπΉ Sao Tome and Principe is more favourable for high earners.
π VAT/Sales Tax: Spain has a higher consumption tax (15% vs 4β21%).
π’ Corporate Tax: Corporate rates are similar in both countries (25% vs 25%).
π Capital Gains: πΈπΉ Sao Tome and Principe taxes investment gains at a lower rate (25% vs 28%), benefiting investors.