Malta vs Portugal taxes (2026): corporate, dividend and personal tax

Malta vs Portugal tax rates at a glance

Tax	🇲🇹 Malta	🇵🇹 Portugal
Income tax	Income tax: 0%-35% Top marginal rate: 35% Foreign income for non-doms: 0% if not remitted Employee social security: 10% Self-employed social security: 15%	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 income tax: 35% Elective final income tax: 15% Dividend withholding tax: 0% in most cases Foreign company income: Malta-source / remitted income	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: Up to 35% Maltese property transfer WHT: 8% / 10% Foreign capital gains for non-doms: 0% if not remitted Listed share exemptions: Available	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	General dividend withholding tax: 0% Untaxed-income distribution WHT: 15% Maltese company dividends: Usually no extra tax Foreign dividends: 0%-35% depending on status	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	Inheritance tax: 0% Causa mortis duty: 5% Reduced residential duty: 3.5% Late filing interest: 4% p.a.	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 18%	VAT: 23%

Who wins on each tax

Personal income taxTie

Portugal is simpler for ordinary residents, while Malta can be more efficient for non-doms under the remittance basis.

Corporate taxPortugal

Portugal's 19% mainland rate is far lower than Malta's 35% headline rate.

Capital gains taxPortugal

Portugal's default 28% capital gains rate is usually lighter than Malta's general up-to-35% system.

Dividend taxMalta

Malta is usually lighter at the shareholder level because most ordinary company dividends carry no withholding tax.

VATPortugal

Malta's 18% VAT is lower than Portugal's 23% mainland standard rate.

Treaty network & structuringTie

Both are solid EU jurisdictions, but the better result depends on whether you need treaty depth or shareholder refund mechanics.

The verdict

Portugal is usually the better default operating country. Its mainland corporate tax rate is lower, its capital gains tax is simpler and its EU base is easier to explain for ordinary residents and companies.

Malta still has a strong niche. Non-doms can often use remittance basis taxation, and the 35% corporate system can be efficient once shareholder refunds are factored in. That makes Malta attractive for the right ownership profile.

The practical rule is simple: choose Portugal if you want a cleaner everyday EU base; choose Malta if your structure is built around non-dom status or refund-driven dividend planning.

How to read this comparison

Malta and Portugal are both valid EU bases, but they are different tools. Portugal is the cleaner default option, while Malta is better when non-dom treatment or refund-led structures are part of the plan.

Frequently asked questions

Is Malta or Portugal better for tax?

Malta can be better if you qualify for non-dom treatment or want to use the refund system well. Portugal is usually better for ordinary residents and simple operating companies.

Does Malta always have lower tax than Portugal?

No. Malta can be very efficient for the right fact pattern, but Portugal has the lower corporate headline rate and a simpler default tax profile.