🇪🇸 vs 🇵🇹

Spain vs Portugal Tax Comparison 2025

Complete side-by-side comparison of Iberian tax systems: Spanish regional variations vs Portugal's NHR regime and tax benefits

Quick Overview

Key differences between Spanish and Portuguese tax systems at a glance

🇪🇸 Spain

  • 📊 Tax Rates: 19% - 47% (progressive)
  • 🏛️ System: National + Regional variations
  • 💼 Social Security: ~6.35% (employee portion)
  • 📅 Tax Year: January - December
  • 📋 Filing Deadline: June 30
  • 💰 Tax-Free: First €12,450
  • 🌍 Special: Beckham Law for expats (24% flat)

🇵🇹 Portugal

  • 📊 Tax Rates: 14.5% - 48% (progressive)
  • 🏛️ System: National system (unified)
  • 💼 Social Security: ~11% (employee portion)
  • 📅 Tax Year: January - December
  • 📋 Filing Deadline: June 30
  • 💰 Tax-Free: First €10,640
  • 🌟 Special: NHR regime (10% flat on foreign income)

Detailed Tax Comparison

Side-by-side breakdown of tax rates, brackets, and contributions

Category 🇪🇸 Spain 🇵🇹 Portugal
Income Tax Brackets 19%, 24%, 30%, 37%, 45%, 47%
Plus regional supplements (varies)		 14.5%, 23%, 26.5%, 35%, 37%, 45%, 48%
Seven-tier progressive system
Tax-Free Allowance €12,450 (2025)
National minimum		 €10,640 (2025)
General minimum
Social Security ~6.35% employee contribution
+ ~29.9% employer portion		 ~11% employee contribution
+ ~23.75% employer portion
Regional Variations Varies by autonomous community
Madrid lower, Catalonia higher		 No regional variations
Unified national system
Expat Tax Regime Beckham Law: 24% flat rate
6 years, on Spanish-sourced income only		 NHR: 10% on foreign pensions
10 years, 20% on Portuguese income
Capital Gains Tax 19% - 26% (progressive)
Separate savings tax scale		 28% flat rate
50% exemption after 2 years holding
Property Tax IBI: 0.4% - 1.3% of cadastral value
Varies by municipality		 IMI: 0.3% - 0.8% of property value
Varies by municipality
Wealth Tax 0.2% - 3.5% on assets >€700k
Varies by region, some exempt		 No general wealth tax
AIMI surcharge on high-value property
VAT/IVA Rate 21% standard rate
10% / 4% reduced rates		 23% standard rate
13% / 6% reduced rates

💡 Key Insight: Effective Tax Rate

For a €50,000 income earner:

  • Spain (standard): ~20-24% income tax + ~6.35% social security = ~26-30% total
  • Portugal (standard): ~22-26% income tax + ~11% social security = ~33-37% total
  • Spain (Beckham Law): 24% flat + ~6.35% social security = ~30% total
  • Portugal (NHR): 20% on Portuguese income + ~11% social security = ~31% total

Note: Portugal's NHR regime is highly advantageous for retirees and remote workers with foreign income. Spain's Beckham Law benefits high earners. Regional variations in Spain can add 1-3%.

Pros and Cons

Advantages and disadvantages of each tax system

🇪🇸 Spain

Advantages

  • Lower social security (6.35% vs 11%)
  • Beckham Law: 24% flat rate for expats
  • Higher tax-free allowance (€12,450)
  • Some regions have no wealth tax (Madrid)
  • Comprehensive healthcare system
  • Lower VAT than Portugal (21% vs 23%)

Disadvantages

  • Top rate of 47% (higher than Portugal)
  • Complex regional tax variations
  • Wealth tax in most regions
  • Higher property purchase taxes (6-10%)
  • Beckham Law limited to 6 years
  • More bureaucratic processes

🇵🇹 Portugal

Advantages

  • NHR regime: 10% on foreign pensions (10 years)
  • No general wealth tax
  • Simpler unified tax system
  • Lower cost of living overall
  • No tax on first €10k+ of income
  • Golden Visa pathway to residency
  • English widely spoken in expat areas

Disadvantages

  • Highest top rate (48%)
  • Higher social security (11% vs 6.35%)
  • Higher VAT (23% vs 21%)
  • Lower tax-free threshold (€10,640)
  • Capital gains tax higher (28%)
  • NHR ending for new applicants (reform ongoing)

Who Pays Less Tax?

It depends on your income source, level, and residency status

💰 Retirees & Pensioners

Winner: Portugal (NHR)

  • Portugal NHR: 10% on foreign pensions
  • Spain: Up to 47% on pension income
  • Portugal massively better for retirees

📊 High Earners (€100k+)

Winner: Spain (Beckham Law)

  • Spain Beckham: 24% flat rate
  • Portugal standard: Up to 48%
  • Spain saves 15-20% for high earners

🏆 Middle Income (€30-60k)

Winner: Spain (slightly)

  • Spain: Lower social security (6.35%)
  • Portugal: Higher SS (11%) hurts
  • Spain 3-5% better overall

The Verdict

Winner depends entirely on your situation. Key considerations:

  • Retirees with foreign pensions: Portugal NHR wins massively (10% vs up to 47%)
  • High earners (€100k+): Spain Beckham Law saves 15-20% (24% flat vs 48% top rate)
  • Middle income workers: Spain slightly better due to lower social security (6.35% vs 11%)
  • Remote workers with foreign income: Portugal NHR excellent (10-20% vs standard rates)
  • Wealthy individuals: Spain (Madrid) - no wealth tax vs Portugal's property surcharge
  • Standard employees: Spain 3-5% better overall, but regional variations matter

Bottom line: Portugal's NHR regime is unbeatable for retirees and remote workers. Spain's Beckham Law and lower social security make it better for high earners and standard employees. Both offer excellent quality of life with reasonable tax rates compared to Northern Europe.

Calculate Your Exact Tax Burden

Use our free calculator to compare your specific situation in both countries

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