Portugal vs Japan
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.
🇯🇵 Japan — Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Portugal vs Japan: Key Tax Differences (2026)
💰 Income Tax: 🇵🇹 Portugal has a higher top income tax rate (13.25–48% vs 5–45%). 🇯🇵 Japan is more favourable for high earners.
🛒 VAT/Sales Tax: Portugal has a higher consumption tax (6–23% vs 8–10%).
🏢 Corporate Tax: 🇵🇹 Portugal offers a lower corporate rate (19% vs 30.62%), which can influence business location decisions.
📈 Capital Gains: 🇯🇵 Japan taxes investment gains at a lower rate (20.315% vs 28%), benefiting investors.