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Portugal vs India
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇵🇹 Portugal
vs
🇮🇳 India
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
13.25–48%
48% top rate; further bracket relief phasing in
No change
0–30%
Zero tax slab expanded; new regime standard
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
6–23%
23% standard; food VAT reductions under review
No change
0–28%
Further GST rationalization expected
No change

Corporate Tax Rate

Corporate Tax Rate
19%
Gradual reduction to 15% by 2030; 19% for 2026
-2.0pp vs 2025
22–25%
Pillar Two domestic rules being finalized
No change

Capital Gains Tax

Capital Gains Tax
28%
28% flat; IFICI regime for new residents
No change
12.5–20%
12.5% LTCG equity; 20% property with indexation
No change

Social Security & Payroll

Social Security / Payroll
~34.75%
Stable; pension reform discussions ongoing
No change
24%
New social security code implementation ongoing
No change
State, Regional & Local Taxes

🇵🇹 PortugalMunicipal & 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.

🇮🇳 IndiaState, Professional & GST Variation

India's 28 states levy professional tax (up to ₹2,500/year), stamp duty on property (3%–8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Portugal vs India: Key Tax Differences (2026)

💰 Income Tax: 🇵🇹 Portugal has a higher top income tax rate (13.25–48% vs 0–30%). 🇮🇳 India is more favourable for high earners.

🛒 VAT/Sales Tax: India has a higher consumption tax (6–23% vs 0–28%).

🏢 Corporate Tax: 🇵🇹 Portugal offers a lower corporate rate (19% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇮🇳 India taxes investment gains at a lower rate (20% vs 28%), benefiting investors.

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