Mexico vs Portugal taxes (2026): IFICI limits vs ISR

Mexico vs Portugal tax rates at a glance

Tax	🇲🇽 Mexico	🇵🇹 Portugal
Income tax	Personal income tax: 1.92% - 35% Highest bracket tax: 35% Foreign income tax: Taxable for residents Salary withholding: Monthly Employee social security: Separate Tax return deadline: 30 April	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	Corporate income tax: 30% Dividend withholding: 10% VAT: 16% Border VAT: 8% Annual return deadline: 31 March	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% Listed share gains: 10% Property gains: Up to 35% Nonresident gross method: 25% Nonresident net method: 35%	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Dividend withholding tax: 10% Domestic dividend tax: 10% Foreign dividend tax: Taxable	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% Estate tax: 0% Gift tax: 0% / limited Probate tax: 0%	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 16%	VAT: 23%
Standard VAT	16%	23% mainland
New-resident relief	No special expat PIT; worldwide ISR and treaties	IFICI and transitional reliefs; old NHR closed to new applicants

Who wins on each tax

Personal income taxMexico

Mexico's resident ISR tops at 35%; Portugal's 2026 IRS table reaches 48% before solidarity surcharges.

Corporate taxPortugal

Portugal's mainland corporate rate is 19%; Mexico's federal CIT is 30%.

Capital gains taxPortugal

Portugal commonly taxes many investment gains at 28%; Mexico can tax gains up to 35%, although some listed-share sales can use a 10% final tax.

VATMexico

Mexico VAT is 16%; Portugal's mainland standard VAT is 23%.

The verdict

Mexico is usually lighter on the personal headline: 1.92% to 35% ISR versus Portugal's 12.5% to 48% IRS, and Mexico VAT is 16% against Portugal's 23% mainland rate. Portugal is usually lighter on companies: 19% mainland CIT versus Mexico's 30%.

The non-rate constraint is Portugal's IFICI limit versus Mexico's worldwide ISR and treaty practice. New applicants cannot rely on the old NHR regime. IFICI, transitional reliefs and treaty residence are the current Portuguese conversation, and they are not a 0% default. Mexican residents report worldwide income to SAT, with 60+ treaties that can relieve double tax but do not cap ISR at a special expat rate.

Choose Mexico for a 35% personal cap, no federal wealth or inheritance tax, and North American operations. Choose Portugal for EU residence, 19% companies, and 28% investment income if IFICI actually applies to your profile — not because NHR still exists for everyone.

How to read this comparison

Mexico is a worldwide system for residents with a 1.92% to 35% ISR scale, 30% corporate tax, 10% dividend withholding, capital gains up to 35%, and 16% VAT. There is no federal net wealth tax and no federal inheritance tax. SAT, CFDI invoicing and payroll social security dominate the compliance calendar. Mexico has 60+ tax treaties, which can reduce withholding and double tax when the resident actually claims them.

Portugal is an EU system with 12.5% to 48% IRS, 19% mainland corporate tax from 2026, 28% default tax on dividends and many capital gains, and 23% mainland VAT. There is no general net wealth tax and no inheritance tax; AIMI and IMI apply to property, and stamp duty can apply to gifts outside the close-family exemption. Employer social security is generally 23.75% and employees 11%.

The constraint is IFICI's limited reach versus Mexican ISR and treaties. The old NHR regime is not open to new applicants. IFICI and former-resident relief can still matter, but they are eligibility regimes, not a marketing promise that every remote worker pays 0% in Portugal. A person who does not qualify is on the 12.5% to 48% table plus solidarity tax at higher incomes. Mexico has no equivalent special expat PIT: residents are on ISR, and treaties are the relief mechanism.

Choose Mexico if 35% personal tax, 16% VAT and no federal wealth tax beat 48% IRS and 23% VAT, and the life or business can sit in Mexico. Choose Portugal for EU residence, 19% companies, and only count IFICI if the statutory profile fits. A Mexican–Portuguese treaty analysis is worthwhile for dividends, pensions and dual residence; it is not a substitute for picking a tax home.

Which one fits you

🇲🇽 Choose Mexico if you're a…

Nearshore and North American operators
Residents who want a 35% personal cap and no federal wealth tax
People who will use Mexico's treaty network from a SAT-resident base

🇵🇹 Choose Portugal if you're a…

Qualifying IFICI or former-resident profiles, not every new arrival
EU-bound families and 19% mainland companies
Investors who prefer 28% default investment tax to 35% ISR on gains

Frequently asked questions

Is Mexico or Portugal better for tax?

Mexico is usually better on personal income tax, VAT, and the absence of federal wealth and inheritance tax. Portugal is usually better on corporate tax and EU access, and it can be better for people who actually qualify for IFICI.

Can I still get Portugal's NHR?

Not as a new applicant. The old NHR regime is closed. Current planning is usually IFICI, former-resident relief, ordinary worldwide IRS and treaty residence, which is a narrower set of facts.

Does Mexico tax worldwide income?

Yes for Mexican tax residents. Treaties can reduce double tax on foreign dividends, interest or gains, but they do not replace ISR or SAT filing for a resident.