France vs Portugal taxes (2026): income, company and investment tax

France vs Portugal tax rates at a glance

Tax	🇫🇷 France	🇵🇹 Portugal
Income tax	Tax-free band: EUR 11,600 Entry rate: 11% Top rate: 45% Exceptional high-income contribution: 3% / 4% Employment social charges: Material Investment flat tax (PFU): 31.4%	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	Standard corporate tax: 25% SME reduced rate: 15% on first EUR 42,500 Social contribution on CIT: 3.3% IP Box reduced rate: 10% QDMTT / Pillar Two: 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	Securities PFU: 31.4% PFU income-tax component: 12.8% PFU social levies: 18.6% Real-estate income tax: 19% Full property IR exemption: 22 years Full property social exemption: 30 years	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Resident PFU total: 31.4% PFU income tax: 12.8% PFU social levies: 18.6% Non-resident individual WHT: 12.8% Progressive election: Optional Common dividend allowance on progressive route: 40%	Individual dividend tax: 28% Portuguese withholding tax: 25% Foreign dividend tax: 28% Blacklisted jurisdictions: 35%
Wealth tax	General net wealth tax: 0% IFI threshold: EUR 1,300,000 EUR 800,001 to EUR 1,300,000: 0.50% EUR 1,300,001 to EUR 2,570,000: 0.70% EUR 2,570,001 to EUR 5,000,000: 1.00% EUR 5,000,001 to EUR 10,000,000: 1.25% Above EUR 10,000,000: 1.50%	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	Spouse / PACS partner: Exempt Children / parents: 5% - 45% Child allowance: EUR 100,000 Siblings: 35% / 45% Distant relatives / unrelated: 55% / 60%	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 20% / 10% / 5.5% / 2.1%	VAT: 23%

Who wins on each tax

Personal income taxFrance

France's national top rate is 45%, versus Portugal's 48%; French social charges and Portugal's 11% employee social security still require payroll modelling.

Corporate taxPortugal

Portugal's mainland corporate rate is 19% from 2026, below France's 25% standard rate, although municipal and state surtaxes can apply.

Capital gains taxPortugal

Portugal's default individual rate is 28%, while France generally applies a 31.4% securities PFU; property and holding-period rules can change both outcomes.

Dividend taxPortugal

Portugal generally taxes individual dividends at 28%, below France's 31.4% PFU; source withholding and treaty relief are separate questions.

Wealth taxTie

Neither country levies a broad net wealth tax, but France has IFI on high-value real estate and Portugal has AIMI above property thresholds.

The verdict

France's ordinary income scale tops out at 45%, compared with Portugal's 48%, but French social charges and household-quotient rules mean neither headline rate is a complete take-home comparison.

Portugal is usually lighter for a founder or investor focused on company profits, dividends and standard securities gains: mainland corporate tax is 19% and the default individual rate for those investment items is 28%.

Choose France for employment depth and a large domestic market; choose Portugal for a leaner company-and-investment profile. CFC rules, management and control, treaty residence and substance still control cross-border structures.

How to read this comparison

France is the deeper employment and market base; Portugal is usually the cleaner rate comparison for a founder or investor. Neither result can be separated from residence, social charges, CFC exposure and real company substance.

Frequently asked questions

Is France or Portugal better for tax?

Portugal is usually better for company profits, dividends and standard investment gains. France can be better for ordinary employment income and offers a deeper large-market base.

Does Portugal have a wealth tax?

Portugal has no broad net wealth tax, but AIMI can apply to qualifying Portuguese real estate. France similarly has no general financial wealth tax but does levy IFI on non-professional real estate.