Canada vs Portugal taxes (2026): income, company and capital gains

Canada vs Portugal tax rates at a glance

Tax	🇨🇦 Canada	🇵🇹 Portugal
Income tax	Personal income tax: 14% - 54.8% Federal bracket 1: 14% Federal bracket 2: 20.5% Federal bracket 3: 26% Federal bracket 4: 29% Federal bracket 5: 33% Combined top marginal rate: About 44.5% - 54.8%	Personal income tax: 12.5% - 48% Non-resident employment rate: 25% Dividend and interest income: 28% Employee social security: 11% Employer social security: 23.75%
Corporate tax	Corporate tax: 23% - 30% Federal general corporate tax: 15% Federal CCPC small-business rate: 9% Alberta general corporate tax: 8% Alberta small-business tax: 2% Large-group minimum tax: 15%	Standard corporate tax: 19% SME rate: 15% Municipal surtax: Up to 1.5% State surtax: 3% - 9% Madeira / Azores: 13.3%
Capital gains tax	Capital gains tax: 50% inclusion General capital-gains inclusion: 50% Tax on the included amount: Marginal rates Principal residence: Potential exemption Lifetime capital gains exemption: Indexed from $1.25m	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Dividend tax: Integrated Eligible dividend gross-up: 38% Non-eligible dividend gross-up: 15% Resident dividend tax: Marginal rates after credits Non-resident domestic withholding: 25%	Individual dividend tax: 28% Portuguese withholding tax: 25% Foreign dividend tax: 28% Blacklisted jurisdictions: 35%
Wealth tax	Wealth tax: 0% General net wealth tax: 0% Federal Underused Housing Tax: 1% for 2022 - 2024 Municipal property tax: Local rates Capital-gains inclusion: 50%	Net wealth tax: 0% AIMI for individuals: 0.7% AIMI for companies: 0.4% AIMI for tax havens: 7.5% IMI urban property: 0.3% - 0.45%
Inheritance / estate tax	Inheritance tax: 0% Federal inheritance tax: 0% Tax on deemed capital gains: 50% inclusion Spouse or partner transfer: Potential rollover Probate or estate administration: Provincial rates	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	GST/HST: 5% - 15%	VAT: 23%
Other key taxes	Combined top personal marginal rate: About 44.5% - 54.8% Federal CCPC small-business rate: 9% Capital-gains inclusion rate: 50% Non-resident Part XIII withholding: 25%	None listed on country overview

Who wins on each tax

Personal income taxTie

Portugal tops at 48%, while Canada's combined top marginal range is about 44.5%-54.8%; the Canadian province and social contributions are decisive.

Corporate taxPortugal

Portugal's mainland corporate rate is 19% before surtaxes; Canada's combined general corporate rates are about 23%-30%, while eligible CCPC income uses a different rate.

Capital gains taxPortugal

Portugal generally uses a 28% individual default; Canada generally includes 50% of a gain in taxable income at the taxpayer's federal and provincial marginal rates.

Dividend taxTie

Portugal generally taxes individual dividends at 28%; Canada uses gross-up and dividend credits, so the final result depends on province, dividend type and company tax.

Inheritance taxPortugal

Portugal has no separate inheritance tax and close family is generally exempt from its gratuitous-transfer stamp duty; Canada can tax deemed gains at death.

The verdict

Canada's combined top personal rates range about 44.5%-54.8% by province; Portugal's 2026 scale reaches 48%. Canada also adds a 50% capital-gains inclusion system and departure-tax risk.

Portugal's 19% mainland corporate rate and 28% default on many dividends and gains can be lighter than Canada's combined corporate and personal layers, but Portuguese surtaxes and property levies still apply.

Choose Canada for North American customers, workforce and market access; choose Portugal for an EU residence and simpler family-succession profile. Departure tax, CFC, treaty residence and real management location must be checked.

How to read this comparison

Portugal usually wins the recurring tax comparison; Canada often wins the commercial-market comparison. A Canadian departure tax calculation should be done before the move, not after it.

Frequently asked questions

Is Canada or Portugal lower tax?

Portugal is usually lighter for standard investment income, company profits and close-family succession. Canada may be better commercially and can be competitive depending on province, corporation type and available credits.

Does Canada charge departure tax when moving to Portugal?

Canada can treat many assets as disposed of when Canadian tax residence ends, subject to exclusions and reporting. The move also needs Portuguese residence, treaty and foreign-tax-credit analysis.