Germany vs Portugal taxes (2026): income, corporate tax and CGT

Germany vs Portugal tax rates at a glance

Tax	🇩🇪 Germany	🇵🇹 Portugal
Income tax	Basic allowance: EUR 12,348 Entry rate: 14% Top rate: 45% Solidarity surcharge: 5.5% Church tax: 8% / 9% Employee pension, unemployment, health and care contributions: Capped	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	Corporation tax: 15% Solidarity surcharge: 5.5% Trade tax base rate: 3.5% Trade tax effective range: 7% - 20.3% DMTT / 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 gains tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Saver allowance: EUR 1,000 / EUR 2,000 Private-sale holding period: 1 year / 10 years	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Dividend withholding tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Annual saver allowance: EUR 1,000 / EUR 2,000	Individual dividend tax: 28% Portuguese withholding tax: 25% Foreign dividend tax: 28% Blacklisted jurisdictions: 35%
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	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	Tax class I: 7% - 30% Tax class II: 15% - 43% Tax class III: 30% - 50% Tax-free allowances: EUR 20,000 - EUR 500,000	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 19% / 7%	VAT: 23%

Who wins on each tax

Personal income taxGermany

Germany's headline top rate is 45%, below Portugal's 48%, though both have material social charges.

Corporate taxPortugal

Portugal's 19% mainland rate is below Germany's combined corporation and trade-tax burden, often around 30%.

Capital gains taxGermany

Germany generally taxes listed securities gains at 25% plus solidarity surcharge after a EUR 1,000 saver allowance; Portugal commonly applies 28%, but Portuguese real estate, long-held securities and non-resident cases can follow different rules.

Inheritance taxPortugal

Portugal has no separate inheritance tax: spouses, descendants and ascendants are exempt from the 10% stamp duty, while other gratuitous transfers can face it and property gifts also carry 0.8% stamp duty. Germany's inheritance tax is 7% to 50% after relationship-based allowances.

Market scaleGermany

Germany has a much larger domestic economy and industrial base.

The verdict

Portugal's 48% top personal rate is only slightly above Germany's 45%, but local social charges, income mix and residence rules matter more than the comparison suggests.

Germany is often better for listed investments, with a 25% tax plus solidarity surcharge versus Portugal's usual 28% autonomous rate.

Portugal fits a lifestyle-led EU relocation; Germany fits founders and employees tied to its large domestic market.

How to read this comparison

Germany and Portugal appeal to different EU movers: one is a major operating economy, the other a smaller lifestyle and services base.

Frequently asked questions

Is Portugal lower tax than Germany?

Portugal is generally lower for corporate profits but not automatically for all personal or investment income. Germany can be lighter on listed securities.