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Spain vs Portugal Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Spain47%Lower
Portugal48%
Corporate Tax
Spain25%
Portugal19%Lower
Capital Gains
Spain28%
Portugal28%
VAT / Sales Tax
Spain21%Lower
Portugal23%
| Category | Spain | Portugal |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 47% | 48% |
| Corporate Tax | 25% | 19% |
| Capital Gains | 28% | 28% |
| VAT / Sales Tax | 21% | 23% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | Yes | No |
| Tax Treaties | 93 | 80 |
| Currency | EUR | EUR |
The bottom line: Spain vs Portugal
Spain has the lower headline rate on 2 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Spain runs a progressive tax system, while Portugal uses a progressive one. Spain has the wider tax-treaty network (93 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Spain is lower (47% vs 48%)
- Corporate tax: Portugal is lower (25% vs 19%)
- Capital gains tax: identical in both (28%)
- VAT / sales tax: Spain is lower (21% vs 23%)