Georgia vs Portugal taxes (2026): income, corporate tax and VAT

Georgia vs Portugal tax rates at a glance

Tax	🇬🇪 Georgia	🇵🇹 Portugal
Income tax	Salary tax: 20% Business income tax: 20% Rental income tax: 20% Foreign-source income for residents: 0% Nonresident Georgian-source salary: 20%	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: 15% Retained earnings: 0% Banks, credit unions, microfinance organisations and loan providers: 20% Dividend distribution: 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	Individual capital gains tax: 20% Reduced rate: 5% Corporate gains: 15% Crypto gains: No separate CGT	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Dividend withholding tax: 5% Dividends to Georgian companies: 0% Foreign dividends to resident individuals: 0%	Individual dividend tax: 28% Portuguese withholding tax: 25% Foreign dividend tax: 28% Blacklisted jurisdictions: 35%
Wealth tax	Net wealth tax: 0% Property tax on individuals: 0.05% - 1.0% Land tax: Separate	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% Estate tax: 0% Gift tax: Depends Probate tax: 0%	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 18%	VAT: 23%
Standard VAT	18%	23% mainland
Corporate model	Tax generally on distributions	Ordinary annual corporate tax

Who wins on each tax

Personal income taxGeorgia

Georgia's flat 20% rate is far below Portugal's progressive rates up to 48%.

Corporate taxGeorgia

Georgia taxes distributed profits under its Estonian-style system, while Portugal applies a regular 19% mainland corporate rate.

Capital gains taxGeorgia

Georgia is often lower for taxable gains, while Portugal commonly taxes investment gains at 28%.

VATGeorgia

Georgia VAT is 18%, below Portugal's 23% mainland standard VAT.

EU residencePortugal

Portugal offers EU residence and EU lifestyle access; Georgia does not.

The verdict

Georgia wins on tax. It has a flat 20% personal income tax, no net wealth tax, no inheritance tax, 18% VAT and an Estonian-style company tax system where retained profits are generally not taxed until distribution.

Portugal is a higher-tax EU country. Residents are generally taxed on worldwide income, progressive personal rates reach 48%, VAT is 23% on the mainland and investment income is commonly taxed at 28%.

Choose Georgia for lower ordinary tax and retained-profit company planning. Choose Portugal if EU residence, schools, healthcare, treaty access and life in Portugal are worth the higher tax burden.

How to read this comparison

Georgia is the lower-tax answer. Portugal is the EU residence and lifestyle answer, and that choice only works if those benefits justify the extra tax.

Which one fits you

🇬🇪 Choose Georgia if you're a…

Founders retaining profits inside a company
Individuals seeking simple lower headline rates
Mobile residents who do not need EU residence

🇵🇹 Choose Portugal if you're a…

People who need EU residence
Families prioritising Portugal's lifestyle and services
Businesses needing Portuguese or EU market presence

Frequently asked questions

Is Georgia or Portugal better for tax?

Georgia is usually better for tax because its personal, corporate and VAT rates are lower and retained company profits can benefit from the distribution-based system.

Does Portugal tax worldwide income?

Yes. Portuguese tax residents are generally taxed on worldwide income, subject to treaty relief and any specific regime that applies.

Why choose Portugal over Georgia?

Portugal can be better for EU residence, lifestyle, treaty access, schools, healthcare and long-term European footing.