Compare taxes and see how much you save moving from Portugal to France
Portugal and France are both popular European expat destinations — but their tax treatment of new arrivals differs dramatically. France has no equivalent to Portugal's IFICI regime (successor to NHR from 2024): qualifying new residents pay a flat 20% income tax rate for 10 years. At €80,000 salary, this produces an effective rate of approximately 20% vs France's combined effective rate of ~44–48%. Even at standard Portuguese rates (IRS, 14.5–48% progressive), Portugal is considerably cheaper than France due to France's high social charges. Portugal's lower cost of living — particularly outside Lisbon — amplifies the advantage. Both countries attract large English-speaking expat communities; Portugal via the D7 passive income visa and digital nomad visa; France via quality of life, culture, and healthcare.
IFICI Flat Rate (10 years)
Standard IRS top rate 48%; IFICI regime 20% flat for qualifying expats
IRPP Top Rate
Plus prélèvements sociaux ~9.7%
At €80,000 income:
That is €1,500/month back in your pocket!
| Income | PT Tax | FR Tax | Savings | 10-Year |
|---|---|---|---|---|
| €40,000 | €8,000 IFICI flat (20%) or ~€6,800 standard IRS + ~€3,680 SS = ~€10,480 standard | ~€6,200 IRPP + ~€8,800 social charges = ~€15,000 (~37.5%) | Portugal saves ~€5,000 (standard) or ~€7,000 (IFICI) | €50,000–€70,000 |
| €60,000 | €12,000 IFICI (20%) or ~€14,200 standard IRS + ~€5,514 SS = ~€19,714 standard | ~€13,500 IRPP + ~€13,200 social charges = ~€26,700 (~44.5%) | Portugal saves ~€7,000 (standard) or ~€14,700 (IFICI) | €70,000–€147,000 |
| €80,000 | €16,000 IFICI (20%) or ~€22,400 standard IRS + ~€7,352 SS = ~€29,752 standard | ~€21,500 IRPP + ~€17,600 social charges = ~€39,100 (~49%) | Portugal saves ~€9,000 (standard) or ~€23,100 (IFICI) | €90,000–€231,000 |
| €100,000 | €20,000 IFICI (20%) or ~€30,800 standard IRS + ~€9,190 SS = ~€39,990 standard | ~€30,000 IRPP + ~€21,800 social charges = ~€51,800 (~52%) | Portugal saves ~€12,000 (standard) or ~€31,800 (IFICI) | €120,000–€318,000 |
| €150,000 | €30,000 IFICI (20%) or ~€55,500 standard IRS + ~€9,190 SS (capped) = ~€64,690 standard | ~€51,000 IRPP + ~€25,000 social charges = ~€76,000 (~51%) | Portugal saves ~€12,000 (standard) or ~€46,000 (IFICI) | €120,000–€460,000 |
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Moving between Portugal and France, or receiving foreign income in euros? Wise transfers at the real exchange rate — used by millions of expats for salary remittances, pension transfers, and international money management.
⚠ For currency exchange only — not a bank account replacement.
Transfer EUR at the Real Rate →Portugal's Non-Habitual Resident (NHR) regime — which provided tax exemptions or flat rates for 10 years — was replaced from January 1, 2024 by the IFICI (Incentivo Fiscal à Captação de Investimento e Residentes). Key changes: the IFICI flat rate is 20% on qualifying Portuguese-source employment and self-employment income (same as the old NHR employment income rate); the old NHR flat 10% on foreign pension income is abolished under IFICI; the exemption on foreign income for many categories is narrowed. IFICI targets specific sectors: technology, scientific research, highly qualified professionals, and startup founders. Those who registered under NHR before January 1, 2024 keep their NHR benefits for the remainder of their 10-year period.
Significantly so. Foreign retirees in France pay full French income tax on pension income at standard rates (up to 45%) plus prélèvements sociaux (9.7%). Portugal under the old NHR offered 10% flat on foreign pension income; under IFICI, foreign pensions are generally taxed at standard IRS progressive rates rather than the 20% flat — though this may still be lower than French rates at many income levels. For a €40,000 annual pension: Portugal standard IRS might produce ~€6,000–7,000 tax vs France's ~€15,000–18,000 combined tax and contributions. Portugal also offers a D7 visa for retirees with sufficient passive income, and the lower cost of living amplifies the advantage.
Portuguese employees pay approximately 11% in social contributions (Segurança Social: 11% of gross, with employer paying 23.75%). This is dramatically lower than French employee social charges of approximately 20–23% of gross (covering health, pension, unemployment, and other funds). At €80,000 gross: Portuguese employees pay ~€8,800 in employee Segurança Social vs approximately €17,000–18,000 in French employee charges. This difference in social contributions alone — before income tax — represents a major factor in Portugal's take-home advantage over France.
Portugal's D7 passive income visa is designed for non-EU citizens (including post-Brexit UK nationals and Americans) who have sufficient passive income to support themselves in Portugal — typically €760/month minimum (2026 rate). Income sources can include foreign pensions, rental income, dividends, or interest. D7 visa holders become Portuguese tax residents and can apply for the IFICI regime if they meet the professional criteria, or pay standard IRS rates on their income. The D7 combines well with Portugal's Digital Nomad Visa (for remote workers employed by non-Portuguese companies), making Portugal one of the most accessible EU countries for non-EU expat relocation.
For US expats, Portugal is generally more tax-efficient and administratively simpler. Both countries have tax treaties with the US. Portugal's IFICI (if you qualify) or standard IRS rates are lower than France's IRPP plus social charges. US expats in Portugal can use the Foreign Tax Credit to offset US tax on income already taxed in Portugal. The Portugal-US treaty and Portugal's lower rates also mean less residual US tax liability. France's higher taxes can sometimes fully offset US tax liability via the FTC — but this depends on income composition. For retirement with foreign pension income, Portugal's cost structure is significantly more attractive. US citizens in both countries still need to file annual US returns — specialist US expat tax preparation is advisable.