United Kingdom vs Portugal
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.
๐ฌ๐ง United Kingdom โ Devolved, Council & Business Rates
Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).
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.
United Kingdom vs Portugal: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ต๐น Portugal has a higher top income tax rate (0โ45% vs 13.25โ48%). ๐ฌ๐ง United Kingdom is more favourable for high earners.
๐ VAT/Sales Tax: Portugal has a higher consumption tax (0โ20% vs 6โ23%).
๐ข Corporate Tax: ๐ต๐น Portugal offers a lower corporate rate (19% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฌ๐ง United Kingdom taxes investment gains at a lower rate (24% vs 28%), benefiting investors.