Ireland vs Portugal taxes (2026): corporate, dividend and CGT

Ireland vs Portugal tax rates at a glance

Tax	🇮🇪 Ireland	🇵🇹 Portugal
Income tax	Standard rate: 20% Higher rate: 40% Single standard-rate cut-off: About EUR 44,000 USC bands: 0.5% / 2% / 3% / 8% Employee PRSI: 4.2% then 4.35% Employer PRSI: About 9% / 11.25%+	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	Trading profits: 12.5% Passive / non-trading: 25% Company capital gains: 33% Pillar Two minimum: 15% Knowledge Development Box: Effective 10%	Standard corporate tax: 19% SME rate: 15% Municipal surtax: Up to 1.5% State surtax: 3% - 9% Madeira / Azores: 13.3%
Capital gains tax	Standard CGT: 33% Annual individual exemption: EUR 1,270 Certain funds / policies: 40% Corporate gains: Often 33%	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Dividend withholding tax: 25% Standard income tax on dividends: 20% / 40% USC on dividends: Often applies Non-resident relief: Treaty / exemption dependent	Individual dividend tax: 28% Portuguese withholding tax: 25% Foreign dividend tax: 28% Blacklisted jurisdictions: 35%
Wealth tax	Net wealth tax: 0% Annual asset tax: 0% Local property tax: Applies	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	CAT rate: 33% Group A: EUR 400,000 free then 33% Group B: EUR 40,000 free then 33% Group C: EUR 20,000 free then 33% Spouse / civil partner: Generally exempt	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 23%	VAT: 23%

Who wins on each tax

Personal income taxPortugal

Portugal's top personal rate is 48%; Ireland's 20%/40% income-tax bands are supplemented by USC and PRSI, so salary outcomes depend on the income mix.

Corporate taxIreland

Ireland taxes genuine trading profits at 12.5%, below Portugal's 19% mainland rate; Ireland's passive-income rate is generally 25%.

Capital gains taxPortugal

Portugal's default individual capital-gains rate is 28%, below Ireland's general 33% CGT, subject to asset-specific and residence rules.

Dividend taxPortugal

Portugal commonly taxes individual dividends at 28%; Irish-resident individuals generally bring dividends into income tax plus USC after its 25% DWT layer.

Inheritance taxPortugal

Portugal has no separate inheritance tax and exempts close family from its 10% stamp duty on gratuitous transfers, while Ireland's CAT is 33% above relationship thresholds.

The verdict

Ireland's 12.5% trading rate is the clearest founder advantage. Passive income is generally 25%, so the low rate requires genuine active trading and substance.

Portugal usually wins the individual investment comparison: dividends and many capital gains default to 28%, while Ireland can combine 33% CGT or dividend income at 20%/40% plus USC.

Choose Ireland for an operating business with real local activity and international customers; choose Portugal for an individual investor or family. Residence, CFC, treaty and social-security rules remain decisive.

How to read this comparison

Ireland is the operating-company choice; Portugal is more often the personal investment and succession choice. The 12.5% Irish rate is not a passive-income shortcut, and a Portugal move still requires real residence.

Frequently asked questions

Is Ireland or Portugal better for a company?

Ireland is usually better for active trading profits because of its 12.5% rate and multinational ecosystem. Portugal can be competitive for smaller owner-managed businesses after surtaxes and payroll are included.

Is Portugal or Ireland better for investment income?

Portugal is usually lighter on standard dividends and capital gains. Ireland can still work where treaty access, business-exit reliefs or a real operating company outweigh the higher personal investment rates.