US vs Portugal taxes (2026): income, capital gains and dividends

United States vs Portugal tax rates at a glance

Tax	🇺🇸 United States	🇵🇹 Portugal
Income tax	Personal income tax: 10% - 37% Social Security: 6.2% Medicare: 1.45% Additional Medicare: 0.9% State income tax: Varies	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	C corporation tax: 21% CAMT: 15% Pass-through entities: Different State tax: Varies	Standard corporate tax: 19% SME rate: 15% Municipal surtax: Up to 1.5% State surtax: 3% - 9% Madeira / Azores: 13.3%
Capital gains tax	Long-term capital gains: 0% - 20% Short-term capital gains: 10% - 37% Qualified dividends: 0% - 20% NIIT: 3.8%	Default capital gains tax: 28% Property gains taxed: 50% Blacklisted jurisdictions: 35% Non-resident Portuguese securities: 0% / 28%
Dividend tax	Qualified dividends: 0% - 20% Ordinary dividends: 10% - 37% NIIT: 3.8% State tax: Varies	Individual dividend tax: 28% Portuguese withholding tax: 25% Foreign dividend tax: 28% Blacklisted jurisdictions: 35%
Wealth tax	Net wealth tax: 0% Property tax: Varies Estate tax: Up to 40% Gift tax: Up to 40%	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	Federal inheritance tax: 0% Federal estate tax: Up to 40% Federal gift tax: Up to 40% Basic exclusion: $15,000,000	Inheritance tax: 0% Stamp duty on free transfers: 10% Spouse / descendants / ascendants: 0% / 0.8%
VAT / GST / sales tax	Sales tax: Varies by state	VAT: 23%

Who wins on each tax

Personal income taxTie

The US federal top rate is 37% and Portugal's top rate is 48%; US state tax, payroll taxes and citizenship scope make the resident comparison fact-specific.

Corporate taxTie

US C corporations pay 21% federally plus possible state tax; Portugal's mainland rate is 19% plus municipal and state surtaxes, while entity type changes both answers.

Capital gains taxUnited States

US long-term gains generally use 0%, 15% or 20% federal rates, versus Portugal's common 28% individual default; short-term gains are ordinary income in the US.

Dividend taxUnited States

US qualified dividends generally use 0%-20% federal rates, while Portugal generally taxes individual dividends at 28%; ordinary dividends and state tax remain separate.

Inheritance and estate taxPortugal

Portugal has no separate inheritance tax and close family is generally exempt from its gratuitous-transfer stamp duty; the US federal estate tax can reach 40%.

The verdict

The US federal ordinary scale reaches 37%, but state tax, payroll tax and US citizenship or green-card worldwide taxation can materially raise the result. Portugal's personal scale reaches 48% before social security.

The US usually wins for long-term capital gains and qualified dividends at federal rates of 0%-20%, compared with Portugal's common 28% defaults. Portugal wins more clearly for close-family succession, with no separate inheritance tax.

Choose the US for capital-market depth and a US-centred business or portfolio; choose Portugal for EU residence and family planning. Citizenship, CFC, exit-tax, treaty and substance rules can dominate the rate comparison.

How to read this comparison

The US is usually the stronger investment-market jurisdiction; Portugal is often the more straightforward EU residence and succession option. A US passport can outweigh the headline rate difference.

Frequently asked questions

Is the US or Portugal lower tax?

The US is often lower for long-term investment gains and qualified dividends, while Portugal can be more predictable for EU residence and close-family succession. US state, citizenship and Portuguese residence facts matter.

Do US citizens pay Portugal tax after moving?

A US citizen remains subject to US worldwide reporting and possible US tax, while Portuguese residence can add Portuguese tax. Foreign tax credits, treaty rules and CFC reporting need coordinated advice.

United States vs Portugal taxes