Estonia vs Portugal
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
πͺπͺ Estonia β Local Income Tax Supplement
Estonia's 79 local governments levy a local income tax supplement of 11.4% of taxable income (2024), collected alongside the national 20% income tax. Together these form the effective total income tax. Estonia's unique fully distributed profit taxation system means companies pay no corporate income tax on retained earnings β only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%β2.5% of assessed land value by municipalities.
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.
Estonia vs Portugal: Key Tax Differences (2026)
π° Income Tax: π΅πΉ Portugal has a higher top income tax rate (22% vs 13.25β48%). πͺπͺ Estonia is more favourable for high earners.
π VAT/Sales Tax: Estonia has a higher consumption tax (9β24% vs 6β23%).
π’ Corporate Tax: π΅πΉ Portugal offers a lower corporate rate (19% vs 22%), which can influence business location decisions.
π Capital Gains: πͺπͺ Estonia taxes investment gains at a lower rate (22% vs 28%), benefiting investors.