Portugal

#33 overall · Score 59.6 / 100 · unchanged from 2025

Overall

#33

59.6 / 100

unchanged from 2025

Corporate

#34

50.5 / 100

up one place from 2025

Individual

#19

61.2 / 100

unchanged from 2025

Consumption

#21

56.7 / 100

unchanged from 2025

Property

#19

60.7 / 100

up one place from 2025

Cross-border

#33

53.5 / 100

unchanged from 2025

Notable Changes from 2025

Portugal has made several improvements to its personal and corporate tax regimes over the last years, reducing its tax rate on long-term capital gains from 28 to 19.6 percent and making its notional interest deduction more generous in 2025. Portugal continued to incrementally reduce its top corporate tax rate from 31.5 in 2024 to 30.5 percent in 2025, further down to 29.5 percent in 2026. Portugal’s rank is 33rd, the same as last year.

Strengths

  • Corporations can deduct their property taxes from their taxable income, and there is an ACE that limits the debt-bias of taxation.
  • Portugal has a territorial tax system, exempting foreign dividends and capital gains income for most countries.
  • Portugal provides above-average capital cost write-offs for investments in machinery.

Weaknesses

  • Portugal has a progressive corporate income tax system with a high top rate of 29.5 percent, including multiple distortive top-up taxes that limit loss offsets.
  • Portugal's corporate tax system features highly complex incentives.
  • Portugal has a high top statutory tax rate on personal income of 53 percent, including top-up taxes, and there is no ceiling on social contributions.

Component Scores

Portugal category scores out of 100Corporate Taxes: score 50.5, rank 34. Individual Taxes: score 61.2, rank 19. Consumption Taxes: score 56.7, rank 21. Property Taxes: score 60.7, rank 19. Cross-Border Tax Rules: score 53.5, rank 33255075100Corporate Taxes: 50.5 (rank 34)Individual Taxes: 61.2 (rank 19)Consumption Taxes: 56.7 (rank 21)Property Taxes: 60.7 (rank 19)Cross-Border Tax Rules: 53.5 (rank 33)CorporateIndividualConsumptionPropertyCross-border
Portugal's rank and score in each category, with the change in rank since 2025
Category Rank Score vs 2025
Corporate Taxes #34 50.5 up one place from 2025
Individual Taxes #19 61.2 unchanged from 2025
Consumption Taxes #21 56.7 unchanged from 2025
Property Taxes #19 60.7 up one place from 2025
Cross-Border Tax Rules #33 53.5 unchanged from 2025

Ranking Changes, 2014–2026

Portugal's best overall rank was 33rd and its worst was 37th. It ranks 33rd in 2026.

Overall rank by year for PortugalPortugal: 2014 rank 37, 2015 rank 35, 2016 rank 35, 2017 rank 34, 2018 rank 34, 2019 rank 35, 2020 rank 35, 2021 rank 35, 2022 rank 34, 2023 rank 34, 2024 rank 34, 2025 rank 33, 2026 rank 332014201520162017201820192020202120222023202420252026Portugal 2014: rank 37Portugal 2015: rank 35Portugal 2016: rank 35Portugal 2017: rank 34Portugal 2018: rank 34Portugal 2019: rank 35Portugal 2020: rank 35Portugal 2021: rank 35Portugal 2022: rank 34Portugal 2023: rank 34Portugal 2024: rank 34Portugal 2025: rank 33Portugal 2026: rank 33#37#33

OECD Context

Each row places all 38 countries on a 0–100 score scale for one measure. Portugal is highlighted; the dashed line is the OECD median.

All 38 Countries' Ranks

Overall and category ranks for all 38 countries
CountryOverallCorporateIndividualConsumptionPropertyCross-border
Estonia#1#2#1#24#1#7
Latvia#2#1#8#22#4#6
New Zealand#3#31#7#1#8#14
Switzerland#4#7#9#4#36#2
Lithuania#5#3#10#23#6#16
Luxembourg#6#20#21#7#15#5
Czech Republic#7#9#4#32#5#11
Australia#8#29#14#9#3#23
Turkey#9#21#6#15#22#8
Hungary#10#5#3#38#23#4
Israel#11#11#31#11#10#18
Slovak Republic#12#24#2#33#7#17
Sweden#13#6#18#26#9#12
Costa Rica#14#35#13#6#11#29
Canada#15#17#28#8#25#28
Netherlands#16#23#30#14#20#3
United States#17#8#17#3#27#37
Austria#18#18#27#17#17#10
Germany#19#30#34#13#12#9
Norway#20#15#29#27#16#15
Mexico#21#28#26#12#2#38
Finland#22#10#24#28#21#24
Greece#23#22#5#29#30#19
Chile#24#32#23#10#13#36
Slovenia#25#14#12#30#24#30
Korea#26#26#38#2#31#34
Belgium#27#16#15#25#28#21
Japan#28#36#35#5#26#31
Ireland#29#4#36#35#18#27
United Kingdom#30#25#22#34#33#1
Denmark#31#19#37#20#14#32
Poland#32#12#11#36#29#25
Portugal#33#34#19#21#19#33
Iceland#34#13#32#19#34#26
Spain#35#33#20#18#35#20
Italy#36#27#16#37#38#22
Colombia#37#37#25#16#37#35
France#38#38#33#31#32#13

Among European Peers

Portugal ranks 23rd of 27 European OECD members on the overall index.

Source: 2026 International Tax Competitiveness Index.

Notes on the Data

The 2026 Index uses the most up-to-date data available as of July 2026. Data may not reflect changes in countries making rapid reforms.

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About the Authors

Alex Mengden Tax Foundation
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Alex Mengden

Economist

Alex Mengden is an Economist at the Tax Foundation, where he focuses on international tax issues and tax policy in Europe. He holds a BA in philosophy and economics from the University of Bayreuth and an MSc in economics from the Ludwig Maximilian University of Munich.

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Luis Zarka

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Luis Zarka was a 2026 Transatlantic Tax Fellow with the Tax Foundation’s Center for Global Tax Policy.

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