Turkey vs Portugal taxes (2026): IHT 1%

Turkey vs Portugal tax rates at a glance

Tax	🇹🇷 Turkey	🇵🇹 Portugal
Income tax	Personal income tax: 15%-40% Highest bracket tax: 40% Foreign income tax: Generally taxable Tax on wages: Withheld monthly Employee social security: 14% Employer social security: 20.75%	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 profits tax: 25% Standard company tax: 25% Financial sector tax: 30% Foreign company tax: Turkish-source income only DMTT for large MNEs: 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	Capital gains tax: 0% Crypto capital gains tax: Not yet formalised Shares and securities gains: 0%-20% WHT Real estate gains: Taxed if sold within 5 years	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Dividend withholding tax: 15% Domestic dividend tax: Half exempt for resident individuals Foreign dividend tax: Taxable for residents above threshold	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% Property tax: 0.1%-0.6% High-value residence tax: 0.3%-1.0%	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: 1%-30% Estate tax: No separate estate tax Gift tax: 1%-30% Probate tax: No separate probate tax	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	VAT: 20%	VAT: 23%
Standard VAT	20%	23% mainland
EU access	Not an EU member state	EU residence and European commercial platform

Who wins on each tax

Personal income taxTurkey

Turkey's personal scale is 15% to 40%; Portugal's 2026 IRS table is 12.5% to 48% before solidarity surcharges.

Corporate taxPortugal

Portugal's mainland corporate rate is 19%; Turkey's standard rate is 25%, or 30% for financial-sector companies.

Capital gains taxTurkey

Turkey has no general CGT, though some gains are taxed; Portugal commonly applies 28% to many investment gains.

Inheritance / transfer taxPortugal

Portugal has no separate IHT and exempts close family from 10% stamp duty on gifts; Turkey taxes inheritances and gifts at 1% to 30%.

The verdict

Turkey is often lighter on the personal headline, with 15% to 40% income tax versus Portugal's 12.5% to 48%. Portugal is usually lighter on companies, with 19% mainland CIT versus Turkey's 25% standard rate and 30% financial-sector rate.

The non-rate constraint is succession plus EU access. Turkey levies inheritance and gift tax at 1% to 30%. Portugal has no separate inheritance tax: close family is exempt from the 10% stamp duty on gratuitous transfers, while other gifts can still face stamp duty. EU residence, Schengen mobility and the European commercial platform are Portugal's non-rate win; they are not a tax rate.

Choose Portugal for EU footing, 19% companies, and stamp-duty succession rather than 1% to 30% IHT. Choose Turkey for a 40% personal cap, no general CGT, and the domestic market, including the 2026 20-year foreign-income exemption for qualifying new residents.

How to read this comparison

Turkey taxes resident individuals on worldwide income at 15% to 40%, with 2026 employment bands from 15% on the first TRY 190,000 to 40% above TRY 5,300,000. Companies usually pay 25%, or 30% in the financial sector. There is no general capital gains tax, though some gains are taxed and property sales within five years can be in scope, with inflation indexation changing the taxable amount. Dividend withholding is commonly 15%. VAT is 20%. There is no national net wealth tax. Inheritance and gift tax is 1% to 30%. From 2026, qualifying new residents can receive a 20-year exemption for qualifying foreign income.

Portugal taxes residents on worldwide income at 12.5% to 48%, with solidarity tax at higher incomes. Mainland corporate tax is 19% from 2026. Many dividends and capital gains default to 28%. Mainland VAT is 23%. There is no general net wealth tax; AIMI and IMI apply to property. There is no separate inheritance tax. Close family is exempt from the 10% stamp duty on gratuitous transfers, while other gifts can still face that stamp duty. Employee social security is generally 11% and employer 23.75%.

The constraint is Turkish IHT versus Portuguese stamp duty, and EU access as Portugal's non-rate win. A family that would pay 1% to 30% in Turkey on an inherited portfolio may pay no Portuguese inheritance tax and no stamp duty on a close-family transfer, while still facing IRS on later income from those assets. EU residence, mobility and a European commercial platform are why many people still pick Portugal even when 48% IRS is higher than 40% Turkish PIT. Those rights are not a 0% tax regime, and IFICI is not NHR for everyone.

Choose Portugal if EU footing, 19% companies, and stamp-duty succession outweigh the 48% personal scale. Choose Turkey if the market is Turkish, the 40% cap and no general CGT fit the income mix, or the 20-year foreign-income exemption actually applies. Do not convert lira inflation into a tax-rate advantage, and do not convert EU access into a PIT cut. They are different kinds of facts.

Which one fits you

🇹🇷 Choose Turkey if you're a…

People whose life and customers are in Turkey
Qualifying new residents using the 20-year foreign-income exemption
Investors who prefer no general CGT to Portugal's 28% default

🇵🇹 Choose Portugal if you're a…

Families who want EU residence and mobility
Companies that want 19% mainland CIT
Estates that prefer stamp duty to 1% to 30% Turkish IHT

Frequently asked questions

Is Turkey or Portugal better for tax?

Turkey is often better on the personal headline and the absence of a general CGT. Portugal is usually better on corporate tax, succession for close family, and EU access, which is not a rate but is often the reason people choose Portugal.

Does Portugal have inheritance tax?

Portugal has no separate inheritance tax. Close family is exempt from the 10% stamp duty on gratuitous transfers; other gifts can still face stamp duty. Turkey levies inheritance and gift tax at 1% to 30%.

Does EU access change the tax rates?

No. EU membership is not a tax rate. It is Portugal's non-rate advantage: residence rights, mobility and a European operating base. Turkish PIT, CIT and IHT still apply on their own terms.