Spain vs Portugal.

Two countries' verified rules for an early retiree, side by side. There is no winner here: a lower cost, a wealth tax and an exit tax pull in different directions, and which ones matter is yours to weigh.

What pays for your life?

Compare the same source of money in both countries. Open the detail to see when residence starts and which values apply after a move. It also shows what the other country may tax and how the treaty handles double tax.

Income source	Spain	Portugal
Selling investments	A listed-share or fund-unit gain enters the 19–30% savings-income bands. A rollover can defer gains between qualifying mutual funds, but not ETFs.	The year's net gain on listed shares and open-ended funds starts at 28%. After the three longer holding periods, 10%, 20% or 30% of the gain is left out of tax. A gain on an asset held under 365 days is added to other income if your total income reaches the top band.
Dividends	A listed-share dividend enters the 19–30% savings-income bands. Tax taken abroad can reduce the Spanish bill within the treaty limit.	Portugal charges 28% on a foreign listed-share dividend. Tax already taken in the company's country can reduce the Portuguese bill, but only up to that bill. If you choose to add dividends to your other income, only qualifying Portuguese or EU/EEA dividends get the 50% inclusion.
Crypto	A private crypto sale or spend is a savings-base gain taxed at 19–30%, with no holding-period relief or annual exemption. A crypto-to-crypto exchange is also taxable.	A private sale or spend is exempt after at least 365 days and taxed at 28% before then. A crypto-to-crypto swap delays the gain until a later taxable sale. Staking, lending, mining and validation follow income rules instead.
Pension	A foreign private or occupational pension enters the general income-tax bands, which can reach about 47%. The worker-linked newcomer regime is not available for a pension-only move.	A foreign occupational or private pension is added to your other taxable income, with rates up to 48%. NHR is closed to new entrants. Its replacement, IFICI, does not cover pensions.
Own company	A Spanish company pays 25% company tax, with lower bands for qualifying small and micro companies. A dividend to the owner then enters the 19–30% savings-income bands.	There are two bills. Mainland company tax starts at 19%, with a lower first band for some smaller companies and possible surtaxes. A dividend to the owner is then normally 28%. Managing a foreign company from Portugal can also make the company taxable there.

Full income detail: Spain

The full income picture

These are the usual rules for a resident unless a case says otherwise. A new-resident rule, tax wrapper or treaty may change one case without changing the others.

Securities and funds

19 / 21 / 23 / 27 / 30% (savings base)

A listed-share or fund-unit gain enters the 19–30% savings-income bands. A rollover can defer gains between qualifying mutual funds, but not ETFs.

Listed shares 19 / 21 / 23 / 27 / 30% (savings base): A directly held listed-share gain uses the full 19–30% savings-income scale shown above. Identical securities use first-in, first-out matching.
Fund and ETF units 19–30% (savings base): A qualifying retail-fund gain uses the 19–30% savings-income scale. A qualifying switch into another fund defers the gain and carries forward the acquisition value and date.
Holding period and allowances No holding-period discount: Spain grants no holding-period relief on securities gains. A share held one day and one held twenty years face the same 19–30% savings scale.
Losses Different rules apply: Capital losses net against capital gains within the savings base. A net loss may then offset up to 25% of the savings-base returns on movable capital (dividends/interest) in the year, and any remainder carries forward 4 years.
Foreign and US listings 19–30% (savings base): A resident's gain on foreign/US listed shares is taxed the same as domestic. Most treaties leave a listed-securities gain to the residence state, so foreign tax on the gain is uncommon. Check the treaty for source tax and Spain's relief.
Accumulating funds and annual tax Taxed only on disposal (no annual deemed charge): Spain has no annual deemed-distribution or advance-tax on an accumulating fund's fund income for individual investors. An accumulating fund is taxed only on disposal, as a 19–30% savings-base gain.

Worth checking

The savings-base top band was 28% in 2024 and became 30% from 1 Jan 2025. Annual State Budgets can move the bands again.

Dividends

19–30% (savings base)

A listed-share dividend enters the 19–30% savings-income bands. Tax taken abroad can reduce the Spanish bill within the treaty limit.

Spanish company dividend 19 / 21 / 23 / 27 / 30% (savings base): The dividend from a Spanish-resident company is capital mobiliario income in the savings base at 19–30%. This payer applies a 19% withholding on account, credited in the annual return.
Foreign listed-share dividend 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Passive or substantial holding 19–30% regardless of holding size: The rate line above gives the resident result. The rule is tested when the income is received.
Fund or ETF distribution 19–30% (savings base): A fund or ETF distribution is investment income taxed at 19–30%. A Spanish payer withholds 19%, while qualifying fund reinvestment can defer a gain.
New-resident treatment Special rule: An eligible inbound worker is taxed under the non-resident income-tax rules on Spanish-source income. Foreign dividends remain exempt in Spain for up to six years.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Worth checking

Beckham's savings scale for Spanish-source income keeps the pre-2025 28% top band (non-resident income tax). A divergence from the ordinary 30% top.

Crypto

19–30% (savings base)

A private crypto sale or spend is a savings-base gain taxed at 19–30%, with no holding-period relief or annual exemption. A crypto-to-crypto exchange is also taxable.

Sale for money 19–30% (savings base): The disposal of a virtual currency for euros or other legal-tender money is a capital gain in the savings base, taxed at 19 / 21 / 23 / 27 / 30%. This gain is the difference between transmission value and acquisition value.
Crypto-to-crypto exchange 19–30% (taxable exchange): The rate line above gives the resident result. The rule is tested when the asset is sold or otherwise disposed of.
Spending crypto 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the asset is sold or otherwise disposed of.
Staking and lending 19–30% (capital mobiliario, savings base): The rate line above gives the resident result. The rule is tested when the income is received.
Mining, validation and airdrops Income-tax bands: The rate line above gives the resident result. The rule is tested when the income is received.
Private investor or business Savings base (passive) vs general base plus self-employed social contributions (professional): A passive investor uses the savings-income rules, while habitual organised trading or mining can become business income. Self-employed social contributions then apply.
Wealth tax and departure tax Special rule: The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.
New-resident treatment Foreign crypto gains exempt (eligible inbound worker): Under Beckham, foreign-source capital gains (which include gains on crypto held/disposed abroad) are exempt in Spain. Worldwide assets are outside Spanish wealth tax (only Spanish assets taxed).

Worth checking

A crypto exchange is a taxable barter transaction under the current interpretation. Staking classification and the foreign-crypto reporting form remain separate questions.

Pensions

Progressive up to about 47% (residence usually taxes)

A foreign private or occupational pension enters the general income-tax bands, which can reach about 47%. The worker-linked newcomer regime is not available for a pension-only move.

Spain pension Progressive about 19–47% (general base): A Spanish-source pension is general-base income aggregated with other general income and taxed at progressive rates (the state scale to 24.5% plus the autonomic scale, top about 47%). For this case, pension income qualifies for the general employment/pension deduction (rendimientos del trabajo) but has no flat rate.
Foreign state or social-security pension Progressive up to about 47% (subject to treaty): A foreign state or social-security pension is included in worldwide general-base income at progressive rates once the reference person is an ordinary Spanish resident. Many treaties give the residence state the taxing right over social-security pensions, some reserve them to the source state.
Foreign occupational or private pension Progressive up to about 47% (residence usually taxes): The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Foreign government or civil-service pension Usually source-state only: A government/civil-service pension has its own treaty article: it is usually taxable only in the paying (source) state. This applies unless the recipient is a Spanish national and resident, in which case Spain taxes and the source state steps back.
Foreign pension lump sum No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Special foreign-pension rule None for a retiree (Beckham needs a work trigger): Spain has no special foreign-pension regime for a relocating retiree. The Beckham regime would exempt foreign pension income (Spanish-source income only) but is available only.

Worth checking

Spain has renegotiated pension articles with some states (for example the UK treaty). Watch for the treaty's split between social-security, private and government pensions.

If you own a company

19–30% (savings base)

A Spanish company pays 25% company tax, with lower bands for qualifying small and micro companies. A dividend to the owner then enters the 19–30% savings-income bands.

Company profit Taxable under the ordinary rule: A Spanish company pays corporate income tax (company tax) at 25% general. For this case, newly created companies pay 15% for the first profitable year and the next. In 2025 a qualifying small company pays 24% and a micro company with under €1 million of turnover 21–22%, both rates still tapering down.
Distribution from a Spanish company 19–30% (savings base): The distribution from the owner's Spanish company is a dividend in the savings base at 19–30%, with a 19% withholding on account. The corporate-level tax already paid is not credited at the personal level (classic economic double taxation).
Distribution from a foreign company 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Foreign entity type Special rule: Spain generally respects a foreign company as opaque, but a transparent foreign vehicle (partnership, US limited liability company, certain funds) can be looked through. The transparencia fiscal internacional rules can attribute the foreign company's passive income to the Spanish resident before any distribution.
Ownership threshold Special rule: Thresholds that matter for the owner (not for the dividend rate). Controlled foreign companies bites at more than 50% control of a low-taxed foreign entity with passive income.
Sale of your company stake 19–30% (savings base): For this case, sale of the owner's shares is a savings-base gain at 19–30%. This applies if the owner instead leaves Spain holding the stake.
Salary or director fee Income-tax bands: Salary from the owner's company is general-base employment income at progressive rates (about 47% top). Director fees are also general-base employment income domestically and have their own cross-border treaty article (directors' fees).
Social contributions and remuneration risk Special rule: A controlling owner-director normally enters the self-employed social-security system. Its minimum monthly contribution base is higher than the ordinary self-employed base.
Running the company from Spain Special rule: Running a foreign company from Spain can make it Spanish tax-resident when its effective management and control sit there, or create a Spanish permanent establishment. That can expose worldwide company profit or the establishment's profit to Spanish corporate tax.
Controlled foreign company rules Special rule: Spain's transparencia fiscal internacional attributes a low-taxed foreign controlled company's passive income to the Spanish resident before distribution. This applies where control exceeds 50% and the foreign tax is under 75% of the Spanish tax that would apply (with an EU-substance carve-out).
New-resident treatment Foreign distributions exempt (eligible inbound worker): The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.

Worth checking

A working company owner can face a minimum self-employed contribution base and related-party market-pay rules. Exit tax and controlled-foreign-company rules remain separate risks.

Review the company and your personal position together before the move.

Interest and cash

19–30% (savings base)

Interest (bank and bond) is savings-base income at 19–30%. Foreign interest same scale, foreign tax credited.

Spain bank or bond interest 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the income is received.
Foreign bank or bond interest 19–30% (savings base): Foreign interest is savings-base income at 19–30%. Tax taken abroad can be credited up to the Spanish tax on that interest. Check the treaty for source tax and Spain's relief.
Allowances and extra charges No general savings allowance: Spain has no general exempt savings/interest allowance and no separate social levy on interest. Domestic interest carries a 19% withholding on account.
New-resident treatment Foreign interest exempt (eligible inbound worker): Under Beckham foreign interest is exempt (Spanish-source income only), for up to 6 years, for an eligible inbound worker. The ordinary resident in this comparison keeps the 19–30% baseline.

Rent

General base, up to about 47%

Rental income is general-base income at progressive rates up to about 47%. For this case, residential lettings get a large net-income reduction (60% general, tiered 50–90% for new contracts from 2024).

Property in Spain General base, up to about 47%: Net rental income (rent minus deductible expenses including mortgage interest, repairs, depreciation at 3%) is general-base income at progressive rates. For a dwelling let as a habitual residence a 60% reduction applies on net income.
Property abroad General base up to about 47%: The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Rental deductions 60% residential reduction (tiered 50 / 60 / 70 / 90% from 2024): The rate line above gives the resident result. The rule is tested when the income is received.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Worth checking

The tiered reductions introduced in 2023 depend on stressed-zone, rent-limit and tenant conditions. The 60% fallback remains separate.

Property gains

19–30% (savings base)

For this case, gain on a property sale is savings-base income at 19–30%. Main-home gain is exempt if reinvested in a new main home or if the seller is 65+.

Spain main home 19–30% (savings base): A gain on the Spanish main home is savings-base income at 19–30%. Exempt if the full proceeds are reinvested in a new main home within 2 years, or entirely exempt if the seller is 65 or older.
Spain investment or second property 19–30% (savings base): A Spanish investment-property gain uses the 19–30% savings-income scale without the main-home exemption. A separate municipal tax on urban land-value growth can also apply.
Foreign property 19–30% (savings base), source credit: The resident's gain on foreign property is savings-base income at 19–30%. Immovable property is normally taxable first in the situs state. Check the treaty for source tax and Spain's relief.
Main-home conditions Exempt under the ordinary rule: This case is exempt when the stated conditions are met. The holding period, asset type or treaty can change that result.
Starting value after a move Historic cost (no arrival step-up): Spain does not rebase property to market value on arrival. The acquisition value remains historic cost, so pre-move appreciation is taxed on a later disposal while resident.
New-resident treatment Foreign property gains exempt (eligible inbound worker): Under Beckham, foreign-property gains are exempt in Spain (Spanish-source only) for eligible inbound workers. A Spanish-property gain remains taxed at non-resident income tax rates.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Worth checking

The municipal land-value tax is a separate transfer levy with its own base. A buyer acquiring Spanish property from a non-resident must also withhold 3% through the prescribed form.

Royalties

General base (creator) or 19–30% savings base (assignor)

Royalties split by who holds the right. A creator's own royalties are general-base income (with possible reductions).

Spain royalties General base (creator) or 19–30% savings base (assignor): Royalties a creator earns from their own work are general-base income (rendimientos del trabajo or actividad economica), taxed progressively. Royalties from ceding the use of intellectual/industrial property you did not create are rendimientos del capital mobiliario in the savings base at 19–30%.
Foreign royalties General base or 19–30% plus source credit: The source state may withhold, relieved by credit up to Spanish tax. Check the treaty for source tax and Spain's relief.
Which rights qualify Different rules apply: The savings-base treatment covers income from ceding the use of copyright, patents, trademarks, know-how and similar to third parties. This applies where the recipient is not the author and it is not a business activity.
Passive or active Savings base (passive) vs general base plus self-employed social contributions (active): The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.
Social contributions and value-added tax Special rule: Royalties from a self-employed creative activity attract self-employed social contributions. The licensing supply can also fall within value-added tax.

Worth checking

The creator-vs-assignor line is the main point (general base up to about 47% vs savings base 19–30%). The 30% irregular-income reduction and value-added tax status also move the result.

If you still work

Progressive about 19–47% plus about 6.5% employee social security

Employment and self-employment use progressive general-income rates up to about 47%. Employees pay about 6.5% social security. Self-employed contributions depend on income.

Employment in Spain Progressive about 19–47% plus about 6.5% employee social security: Employment income earned while working in Spain is general-base income at progressive rates (about 47% top). Employee social-security contributions around 6.5% (capped) and large employer contributions (about 30.65% plus accident rate).
Remote work for a foreign employer Income-tax bands: The Spanish resident working remotely for a foreign employer is taxed on that employment income in the general base at progressive rates (worldwide employment income). The foreign employer risks creating a Spanish permanent establishment or a payroll/social-security obligation.
Self-employment and consulting General base up to about 47% plus income-based self-employed social contributions: The rate line above gives the resident result. The rule is tested when the income is received.
Director fees Income-tax bands: Director fees are general-base income and have their own cross-border treaty article (directors' fees). This rule typically lets the company's country of residence tax them no matter where the director works.
New-resident worker rule Special rule: The rate line above gives the resident result. The rule is tested when the income is received.

Worth checking

Beckham eligibility hinges on the reason for the move (work/entrepreneur trigger) and a 5-year prior-non-residence test. The digital-nomad extension (2023) widened it but a retiree still cannot use it.

Two terms that matter in Spain

Savings base

Spain's separate tax calculation for most investment gains, dividends and interest. It uses its own progressive rates rather than the general income bands.

Impatriate regime

A worker-linked new-resident regime that can limit Spanish tax on some foreign income. A pension-only move does not qualify by itself.

Your first tax year and starting values

Two dates matter: when your new country starts taxing you, and which value it uses to work out a later gain. Check both before you move.

When residence starts: Spain applies a whole-year residence test. More than 183 days, a Spanish centre of economic interests, or a qualifying family presumption can establish residence.
The arrival year: Spain has no split-year treatment. A person is resident or non-resident for the entire calendar year (the tax year is the calendar year and cannot be broken).
Dual residence: A mid-year mover can be claimed by Spain and the former country for the same year. The applicable treaty tie-breaker must resolve that overlap.
Shares, funds, crypto, an owner-company stake and property: Original purchase cost
The original purchase cost continues after the move. A later taxable gain can therefore include growth from before residence began.

Plain-language key

Withholding tax: Tax taken before the money reaches you, usually in the country where the payment comes from.
Tax credit: Tax already paid abroad can reduce the bill where you live. The reduction is usually capped at the local tax on that same income.
Original purchase cost: What you paid for the asset. A market-value reset replaces that figure with the asset's value when you move.
Income-tax bands: The income is added to your other taxable income. Higher total income can push part of it into a higher band.
Permanent establishment: A taxable business presence. Running a foreign company from your new home can create one even if the company remains registered abroad.

This gives you the starting rule, not your final bill. The country paying the money, your treaty, account, holding period, residence dates and activity can change the result.

Full income detail: Portugal

The full income picture

These are the usual rules for a resident unless a case says otherwise. A new-resident rule, tax wrapper or treaty may change one case without changing the others.

Securities and funds

28%, or the income-tax bands by choice

The year's net gain on listed shares and open-ended funds starts at 28%. After the three longer holding periods, 10%, 20% or 30% of the gain is left out of tax. A gain on an asset held under 365 days is added to other income if your total income reaches the top band.

Listed shares 28%, or the income-tax bands by choice: Portugal taxes the year's positive balance of listed-share gains and losses at 28%. You may instead add the gain to your other income, and the holding-period exclusion still applies.
Fund and ETF units 28%, or the income-tax bands by choice: Open-ended fund units use the same disposal rate and long-holding reductions. A Portuguese fund can have different investor-level withholding mechanics, so confirm the vehicle rather than assuming every ETF is identical.
Holding period and short sales 10% / 20% / 30% of the gain excluded: More than 2 years removes 10% of the gain, at least 5 years removes 20%, and at least 8 years removes 30%. A gain on an asset held under 365 days must be added to your other income once total income reaches the top band. Foreign-held assets still face an unresolved Annex J filing issue.
Losses Five-year carry-forward requires the income-tax bands: Gains and losses are first netted within the year. A remaining securities loss can carry forward for five years. You must choose the income-tax bands in the loss year and every year that uses the loss.
Foreign and US listings 28%, or the income-tax bands by choice: Portugal applies the resident rule to foreign listed shares. Foreign tax can reduce the Portuguese bill only up to that bill. The treaty must confirm whether the other country may tax the sale. The Annex J filing gap can still complicate the holding reduction.
Accumulating funds No annual tax on unsold fund growth: Portugal does not tax an accumulating fund's internal income each year. Tax arrives on a distribution or disposal, and the disposal can use the long-holding reduction.

Worth checking

The holding reduction is recent, and the current return form does not expose it cleanly for foreign-held securities. Confirm the filing treatment before relying on the reduction.

Dividends

28% plus tax taken abroad

Portugal charges 28% on a foreign listed-share dividend. Tax already taken in the company's country can reduce the Portuguese bill, but only up to that bill. If you choose to add dividends to your other income, only qualifying Portuguese or EU/EEA dividends get the 50% inclusion.

Portuguese company dividend 28% final withholding: A Portuguese company withholds 28%. If you choose the income-tax bands instead, only half of the qualifying dividend is added to your other income. The tax already withheld counts towards the final bill.
Foreign listed dividend 28% plus tax taken abroad: Portugal taxes the gross foreign dividend at 28%, or adds it to your other income if you choose. The company's country may take tax first. Portugal gives credit only up to its own bill. If the other country took more than the treaty allows, you may need to reclaim the excess there.
EU/EEA company dividend Half added to income if you choose the tax bands: The half-inclusion is available only when the EU/EEA payer is subject to, and not exempt from, a tax comparable to Portuguese corporate tax. It changes the Portuguese base, not the tax taken in the company's country.
Company outside the EU/EEA 28%; no half-inclusion: A third-country company dividend is taxed at 28%, or fully added to your other income if you choose the income-tax bands. Credit for foreign tax is capped at the Portuguese charge. The treaty decides how much the other country may take.
Passive or substantial holding Same personal dividend rate: An individual's dividend rate does not fall because the holding is large. Portugal's participation exemption is a company-level rule, not a personal one.
Fund or ETF distribution 28%: A cash distribution from a fund is investment income at 28%, or added to your other income if you choose. An accumulating fund's internal income follows the separate disposal-timing rule above.
NHR and IFICI Special rules only: Grandfathered NHR residents may still have relief during their existing window. IFICI can exempt qualifying foreign investment income for eligible research and innovation workers. An ordinary new resident remains on the 28% rule.

Worth checking

The choice to use the income-tax bands is made for the year. The half-inclusion depends on the payer satisfying the corporate-tax condition.

Crypto

28% before 365 days; exempt from day 365

A private sale or spend is exempt after at least 365 days and taxed at 28% before then. A crypto-to-crypto swap delays the gain until a later taxable sale. Staking, lending, mining and validation follow income rules instead.

Sale to fiat 28% before 365 days; exempt from day 365: Selling a fungible crypto-asset for money is taxed at 28% before the holding threshold. It is exempt once held for at least 365 days. NFTs do not receive this exemption.
Crypto-to-crypto exchange No tax at the swap: Exchanging one crypto-asset for another defers taxation. The received asset carries the cost of the asset given up.
Spending crypto Same one-year rule as a sale: Paying for goods or services is a disposal. The gain is 28% before 365 days and exempt afterwards. Only a swap into another crypto-asset defers tax.
One-year holding relief Gain exempt after 365 days: The exemption belongs to a private investor's qualifying fungible crypto-asset. Matching losses are disregarded, and the holding clock can include time before the current regime began.
Staking and lending 28% investment income: Passive staking and lending rewards are investment income at 28%, or can be added to your other income if you choose. Payment in crypto can move recognition to the later disposal of the coins received.
Mining and validation Business-income tax bands: Mining and validation rewards are business income. The simplified regime uses different taxable coefficients for general crypto activity and mining, so this is not the disposal-gain rule.
Private investor or business Category G/E or Category B: A private holder uses the gain and investment-income rules. Habitual or business-scale activity moves into business income under the ordinary income-tax bands and can bring social contributions.
Wealth and leaving Portugal No net wealth tax; some gains taxed when you leave: Crypto is outside a general net wealth tax because Portugal has none. Losing Portuguese tax residence can still be treated as a disposal event for crypto.
IFICI Special rule for eligible movers: IFICI can exempt qualifying foreign gains for eligible research and innovation workers. The ordinary new resident relies on the one-year rule, not on a new-resident exemption.

Worth checking

Crypto interpretation is still young, especially for rewards paid in kind and the boundary between private and business activity.

Pensions

Income-tax bands up to 48%

A foreign occupational or private pension is added to your other taxable income, with rates up to 48%. NHR is closed to new entrants. Its replacement, IFICI, does not cover pensions.

Portuguese pension Income-tax bands up to 48%: A pension paid from Portugal is ordinary pension income with the pension deduction and the ordinary income-tax bands. There is no separate flat domestic pension rate.
Foreign state or social-security pension Income-tax bands; treaty decides: Portugal normally includes the pension in worldwide income. The source country may retain the right to tax under the treaty. Portugal then either gives credit or leaves the pension out of tax, depending on that treaty.
Foreign occupational or private pension Income-tax bands up to 48%: Portugal normally adds the pension to your other taxable income. Many treaties let Portugal tax a private pension. The actual treaty must confirm whether the paying country may also take tax and whether you need a reclaim.
Foreign government or civil-service pension Separate treaty article: Do not treat a government-service pension as a state pension. Its own treaty article often keeps taxation in the paying state, with a nationality carve-out that can change the result.
Foreign pension lump sum No safe answer yet: No safe answer is shown yet. Check this exact scheme, payment form and treaty before relying on a lump-sum result.
NHR and IFICI No open pension regime for a new mover: NHR's 10% foreign-pension treatment is closed to new entrants, though existing cases can remain grandfathered. IFICI expressly excludes pension income, so a move now starts from the normal income-tax bands.

Worth checking

Existing NHR windows will remain visible for years, and treaty pension articles can change. Check both instead of assuming the old NHR headline still applies.

If you own a company

28%; EU/EEA half-inclusion by election

There are two bills. Mainland company tax starts at 19%, with a lower first band for some smaller companies and possible surtaxes. A dividend to the owner is then normally 28%. Managing a foreign company from Portugal can also make the company taxable there.

Company profit 19%; qualifying SME first band 15%; surtaxes can apply: Keep the company bill separate from the owner's. Mainland corporate tax is 19%, with 15% on the first €50,000 for a qualifying SME or Small Mid-Cap. Municipal tax can add up to 1.5%. State surtax starts above €1.5 million of taxable profit.
Distribution from a Portuguese company 28%, or half added to other income by choice: The owner normally pays 28% on the dividend. If the income-tax bands are chosen, only half of the qualifying distribution enters the income-tax calculation.
Distribution from a foreign company 28%; EU/EEA half-inclusion by election: Portugal taxes the owner at 28%. Tax taken abroad can reduce that bill only as far as zero. If the owner chooses the income-tax bands, half-inclusion is limited to a qualifying EU/EEA payer. The treaty sets how much the other country may take and any reclaim.
Foreign entity type Classification can change the income: Portugal can look through a partnership or another fiscally transparent entity. A payment called a dividend abroad may therefore be current business income in Portugal.
Ownership threshold No personal participation exemption: A larger holding does not remove personal dividend tax. The company-level participation exemption starts at its own threshold, while the personal CFC test can begin at a 25% holding.
Sale of your stake 28%; only half the gain for some small unlisted companies: A stake sale normally follows the 28% securities rule. Only half the gain enters tax when the company is a qualifying micro or small unlisted company. Listed shares can use the separate long-holding reduction.
Salary or director fee Income-tax bands plus social security: Salary and director fees are employment income taxed at rates up to 48%, with employee and employer social contributions. A foreign director fee can also fall under its own treaty article.
Social and remuneration risk Self-employed contribution can be 21.4%: Taking little salary does not automatically turn personal work into contribution-free dividends. A reclassification can bring earned-income tax and social security, including the self-employed contribution where that category applies.
Running the company from Portugal The company can become taxable in Portugal: Making the main company decisions from Portugal can make a foreign company Portuguese- resident. Activity in Portugal can also create a taxable business presence. Portugal can then tax worldwide company profit or the profit of the Portuguese branch.
Controlled foreign company Can tax profit before a dividend is paid: Portugal can attribute profit from a blacklisted or sufficiently low-taxed foreign company to a Portuguese owner holding at least 25%, even before a distribution.
IFICI Activity-gated special rule: IFICI can change qualifying foreign business or investment income for eligible research and innovation workers. It is not a general owner-manager exemption, and NHR is closed.

Worth checking

Corporate rates and surtax thresholds can move at each budget. Effective management depends on what you actually do from Portugal, not where the company was first registered.

Review the company and your personal position together before the move.

Interest and cash

28% final withholding

Portuguese bank and bond interest is normally withheld at 28%. Foreign interest uses the same resident rate, with credit capped at the Portuguese tax.

Portuguese bank or bond interest 28% final withholding: Domestic interest is withheld at 28%. You can choose to add it to your other income instead. The dividend half-inclusion does not apply to interest.
Foreign interest 28% plus any tax taken abroad: Portugal taxes the gross interest at 28%, or adds it to your other income if you choose. Tax taken abroad can reduce the Portuguese bill only as far as zero. The treaty sets the permitted foreign rate and any reclaim.
Allowances and levies No general savings allowance: Portugal has no general tax-free interest allowance and no separate social levy on passive interest. Domestic withholding normally settles the charge unless you choose the income-tax bands.
NHR and IFICI Special rules only: Grandfathered NHR and an eligible IFICI claim can change foreign interest. Without one of those regimes, the ordinary 28% rule applies.

Rent

25% residential; 28% other; long leases can fall to 5%

Portuguese residential rent uses a lower flat rate than other rent and can fall further for long contracts. Foreign rent enters the worldwide return, with the property country normally taxing first and Portugal providing capped relief.

Property in Portugal 25% residential; 28% other; long leases can fall to 5%: Net residential rent starts at 25%, while other rent starts at 28%. Qualifying residential contracts of 5 to 10, 10 to 20 and at least 20 years can reduce the rate to 15%, 10% and 5%. You can still choose to add the rent to your other income instead.
Property abroad Portuguese resident rate plus property-country tax: The country where the property sits normally taxes the rent first. Portugal also works out its own bill on the net income, then gives credit up to that amount. Different expense rules can still leave Portuguese tax to pay.
EU/EEA property branch No safe answer yet: No safe answer is shown for this branch yet. Check the rule for your property country and treaty pair.
Rental deductions Documented costs reduce the income: Documented maintenance and conservation from the permitted period, property tax and condominium charges can reduce rental income. Capital improvements and furniture are not treated as ordinary rental deductions, and individuals do not receive a general depreciation allowance.

Worth checking

The residential rate has been subject to proposed change. Recheck the enacted rate before using a number in a move calculation.

Property gains

Exempt on qualifying reinvestment

A Portuguese resident normally adds half of a property gain to other taxable income. A qualifying main-home reinvestment can remove the gain, while foreign property is usually taxed first where it sits and then relieved in Portugal.

Portuguese main home Exempt on qualifying reinvestment: The gain can be exempt if you reinvest in another qualifying main home in Portugal or the EU/EEA. The replacement can be bought up to 24 months before the sale or 36 months after it. Without the relief, half the gain is added to your other taxable income.
Portuguese investment or second property Half the gain added to other income: Portugal adds 50% of the gain to your other taxable income. Original purchase cost can be adjusted by the statutory inflation coefficient after the qualifying holding period.
Foreign property Half the gain in Portugal; source tax separate: The property country normally taxes the gain first. Portugal includes half the gain and works out its own bill. Foreign tax can reduce that bill only up to the Portuguese amount. The treaty and each country's gain calculation decide whether anything remains to pay.
Foreign EU/EEA property branch No safe answer yet: No safe answer is shown for this branch yet. Check the rule for your property country and treaty pair.
Foreign third-country property branch No safe answer yet: No safe answer is shown for this branch yet. Check the rule for your property country and treaty pair.
Main-home conditions Home use, proceeds and timing all matter: The sold property must be the household's permanent home. The net proceeds must reach a qualifying replacement home in Portugal or the EU/EEA within the stated window. A separate route can apply to people aged 65 or older, or retired, who use an eligible insurance or pension product.
Starting value after a move Original purchase cost: Portugal does not reset property to market value on arrival. A later resident sale can therefore include appreciation from before the move.
IFICI Special rule for eligible movers: IFICI can exempt qualifying foreign gains for an eligible research or innovation worker. Without that status, the ordinary resident rule and treaty credit apply.

Worth checking

Main-home relief and inflation adjustments can move with a budget. Confirm the current conditions before the sale.

Royalties

28% passive, or business-income rates if active

Passive royalties can be investment income at 28%, while active exploitation is business income under the ordinary income-tax bands. An original author's qualifying copyright income can receive a partial exclusion.

Portuguese royalties 28% passive, or business-income rates if active: A passive licence receipt is investment income at 28%. Active licensing follows the business-income rules instead. A qualifying original author can leave half of eligible literary, artistic or scientific copyright income out of tax, up to the applicable cap.
Foreign royalties Portuguese tax plus tax taken abroad: Portugal taxes the gross royalty under the passive or active category. The other country may take tax first. Portugal gives credit only up to its own bill. The treaty sets the permitted foreign rate and any reclaim.
Which rights qualify Original-author relief is narrow: The partial exclusion belongs to the original holder of qualifying literary, artistic or scientific copyright. Acquired rights, commercial patents and business licensing do not inherit it automatically.
Passive or active Category E or Category B: Occasional passive licensing can stay in investment income. Creating and exploiting rights as an ongoing trade moves the receipt into business income.
Social contributions and VAT Active licensing can add both: Business-category royalties can bring self-employed social security and VAT registration once the relevant conditions are met. This is a warning, not a calculation.

If you still work

Income-tax bands up to 48% plus social security

Employment and self-employment use the ordinary income-tax bands, with social contributions alongside it. IFICI can give eligible research and innovation work a 20% rate for its qualifying period.

Employment in Portugal Income-tax bands up to 48% plus social security: Work physically performed in Portugal is employment income under the ordinary income-tax bands. Employee social security is 11%, with an employer contribution on top.
Remote work for a foreign employer Portuguese tax; employer risk: Portugal taxes a resident's employment income for work done from Portugal. The foreign employer can acquire payroll duties or a taxable business presence in Portugal. The treaty decides which country taxes the workdays. Social security is a separate question.
Self-employment and consulting Income-tax bands on part of the revenue: Consulting is business income. Under the simplified regime, a set percentage of revenue counts as taxable profit. The 21.4% self-employed contribution uses a different calculation, so the two headline percentages cannot simply be added together.
Director fees Income-tax bands; separate treaty article: Director fees are employment-category income in Portugal. A fee from a foreign company can also be taxed in the company's country under the treaty. Portugal then gives the relief required by that treaty.
IFICI worker regime 20% for qualifying work, up to 10 years: Some research, innovation and other listed work can use a 20% rate for up to 10 consecutive years. The person must pass both the prior-residence and activity tests. This is a work regime, not a general retiree rule.

Two terms that matter in Portugal

NHR and IFICI

NHR was the old new-resident regime and is closed to new entrants. IFICI is a narrower work-based regime. It can help with qualifying research, innovation and listed work, but it does not give a new mover a special pension rate.

Adding income together

Some cases let you choose, or require you, to add investment income to your other taxable income. The final rate then depends on your total income instead of staying at the flat 28%.

Your first tax year and starting values

Two dates matter: when your new country starts taxing you, and which value it uses to work out a later gain. Check both before you move.

When residence starts: Tax residence begins after more than 183 days in any 12-month period, or earlier where a Portuguese home is held as a habitual residence. That tax test is separate from an immigration permit.
The arrival year: Portugal applies part-year residence from the first day of the qualifying stay. Worldwide taxation therefore starts on that day, not automatically on 1 January.
Dual residence: If the country left behind still claims residence, use the treaty tie-breaker for that exact pair. The Portuguese day count does not settle the clash by itself.
Listed shares and funds: Original purchase cost
Portugal does not reset listed shares or fund units to market value on arrival. The later gain starts from the price you originally paid.
Crypto: Original purchase cost; the old holding period still counts
There is no arrival reset for crypto. A crypto-to-crypto exchange carries the old cost into the new asset, while time held before the move can count towards the 365-day exemption.
Owner-company stake: Original purchase cost
Shares in your own company keep their documented purchase cost. Arrival does not remove the pre-move gain from a later disposal.
Property: Original purchase cost
Property keeps its original purchase cost, with a statutory inflation adjustment after the relevant holding period. Moving to Portugal does not reset the value.

Plain-language key

Withholding tax: Tax taken before the money reaches you, usually in the country where the payment comes from.
Tax credit: Tax already paid abroad can reduce the bill where you live. The reduction is usually capped at the local tax on that same income.
Original purchase cost: What you paid for the asset. A market-value reset replaces that figure with the asset's value when you move.
Income-tax bands: The income is added to your other taxable income. Higher total income can push part of it into a higher band.
Permanent establishment: A taxable business presence. Running a foreign company from your new home can create one even if the company remains registered abroad.

This gives you the starting rule, not your final bill. The country paying the money, your treaty, account, holding period, residence dates and activity can change the result.

At a glance.

Price it in your money

Tell me where you live now and what you spend a month, and every cost here becomes your number: the same life, priced country by country, in your own currency.

Where you live now

You spend, per month

Shown in

A guide, not a quote. I move your monthly spend by each country’s official price level (Eurostat and the World Bank, whole-economy, EU-27 = 100). No exchange rates, so it stays in your own currency. But averages hide rent and the city you pick, and changing country is rarely a straight swap. Read these as the right ballpark, then price the real thing.

Measure	Spain	Portugal
Cost of living	92	87
A €2,500-a-month life	€2,290/mo	€2,170/mo
The ×30 number it implies	€824,000	€781,000
Housing to buy	€3,739/m²	€5,049/m²
Housing to rent	€27.1/m² · Madrid	€18.1/m² · Lisbon
Housing vs the EU	−3%	−20%
Entry rules
The route in	The non-lucrative visa	The D7 visa
Golden visa	Closed	Open
Years to a passport	10 yrs	10 yrs
The patterns each carries
Lower tax if you hold	no	yes
Yearly tax on holdings	yes	no
Taxes unsold gains	no	no
Exit tax	yes	no
Deals for new residents	no	no
No wealth tax	no	yes
Private crypto gains can be exempt	no	yes
Resident dividend tax at 10% or less	no	no
Foreign pension rule or regime	no	no

A “yes” is not a point scored: “no wealth tax” and “exit tax on leaving” pull opposite ways. Read the column against your own plan, not as a score.

Price the same life in each: Spain · Portugal

The tax rules, in full.

Spain

Cheap to live, but it taxes having.

Wealth tax

Spain taxes wealth every year (the patrimonio) plus a separate state levy on large fortunes. A wealth tax is charged whether your portfolio went up, down or nowhere: in effect a permanent extra withdrawal happening before you've spent a cent, which raises the rate your plan must sustain, and so raises your number.

The regional layer

How hard it bites varies by region, and regional politics move it yearly. The state levy on large fortunes, brought in as temporary, has been extended while the wider wealth-tax review stays unfinished.

Exit tax

Spain has an exit tax for big portfolios, but only for someone who's been Spanish tax resident for at least ten of the previous fifteen years: broadly, covered shares and fund holdings worth €4 million, or a 25%+ company stake worth €1 million or more.

Worth watching

The regional politics are the moving part: what your region charges this year is a fact to re-check, not remember.

The full Spain page

Portugal

The exit's favourite doorstep; the old tax deal is gone.

Wealth tax

None. Portugal has no net wealth tax on financial assets.

Worth watching

The holding-period discounts are recent; verify their current shape before you count on them.

The full Portugal page

Other comparisons

None of this is tax or investment advice: it's education, kept deliberately at the level that survives fact-checking. Rules shift with every budget round; the specifics of your situation belong with a licensed adviser in your country. I'm happily not one.

Spain verified 20 July 2026 · Portugal verified 20 July 2026. What's changed on the map

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