Portugal's Rankings
Overall Rank3346.6
Corporate Taxes3438.87
Individual Taxes3050.9
Consumption Taxes3256.73
Property Taxes2160.68
International Tax Rules3059.94

Portugal ranks 33rd overall on the 2019 International Tax Competitiveness Index, one place better than in 2018.


  • Corporations can deduct their property taxes from their taxable income.
  • Portugal has a territorial tax system, exempting foreign dividend and capital gains income for most countries.
  • Portugal provides above-average capital cost write-offs for investments in machinery.


  • Portugal has a high corporate tax rate of 31.5 percent.
  • Companies are severely limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to reduce past taxable income.
  • The VAT of 23 percent applies to less than half of the potential tax base.

Get email updates about global tax policy from the Tax Foundation.

Subscribe today!