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United Arab Emirates vs Portugal
Tax Rate Comparison

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

🇦🇪 United Arab Emirates
vs
🇵🇹 Portugal
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0%
No personal income tax; unlikely to change short-term
No change
13.25–48%
48% top rate; further bracket relief phasing in
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
6–23%
23% standard; food VAT reductions under review
No change

Corporate Tax Rate

Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
19%
Gradual reduction to 15% by 2030; 19% for 2026
-2.0pp vs 2025

Capital Gains Tax

Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
28%
28% flat; IFICI regime for new residents
No change

Social Security & Payroll

Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~34.75%
Stable; pension reform discussions ongoing
No change
State, Regional & Local Taxes

🇦🇪 United Arab EmiratesEmirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

🇵🇹 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.

⚠️ 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.

United Arab Emirates vs Portugal: Key Tax Differences (2026)

💰 Income Tax: 🇵🇹 Portugal has a higher top income tax rate (0% vs 13.25–48%). 🇦🇪 United Arab Emirates is more favourable for high earners.

🛒 VAT/Sales Tax: Portugal has a higher consumption tax (5% vs 6–23%).

🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 19%), which can influence business location decisions.

📈 Capital Gains: 🇦🇪 United Arab Emirates taxes investment gains at a lower rate (0% vs 28%), benefiting investors.

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