Portugal vs Andorra
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇵🇹 Portugal — 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.
🇦🇩 Andorra — Parish Taxes & Local Levies
Andorra's 7 parishes (parròquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.
Portugal vs Andorra: Key Tax Differences (2026)
💰 Income Tax: 🇵🇹 Portugal has a higher top income tax rate (13.25–48% vs 0–10%). 🇦🇩 Andorra is more favourable for high earners.
🛒 VAT/Sales Tax: Portugal has a higher consumption tax (6–23% vs 4.5%).
🏢 Corporate Tax: 🇦🇩 Andorra offers a lower corporate rate (10% vs 19%), which can influence business location decisions.
📈 Capital Gains: 🇦🇩 Andorra taxes investment gains at a lower rate (0% vs 28%), benefiting investors.