Tax Rate Comparison · 2026

Portugal vs Bulgaria: Tax Rates Compared

Compare Portugal and Bulgaria on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 48% (Portugal) vs 10% (Bulgaria). Includes take-home pay estimates, special regimes, and expat guidance for 2026.

Country A
Portugal
Top income tax: 48%
Corporate: 21%
VAT: 23% · CGT: 28%
VS
Country B
Bulgaria
Top income tax: 10%
Corporate: 10%
VAT: 20% · CGT: 10%

Full Tax Rate Comparison

Tax TypePortugalBulgariaLower Rate
Top Income Tax48%10%Bulgaria
Bottom Income Tax13%10%Bulgaria
Corporate Tax21%10%Bulgaria
VAT / GST23%20%Bulgaria
Capital Gains Tax28%10%Bulgaria
Social Security (Emp)11%13.8%Portugal
Dividend Tax28%5%Bulgaria
Tax Treaties7968Portugal

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Portugal Take-Home
€57,800
Bulgaria Take-Home
€79,720
Annual Difference
+€21,920

Verdict

Overall Tax Burden
Bulgaria has a lower overall tax burden
Bulgaria scores lower on combined tax burden (10 vs 36). Top income tax: 10% vs 48% in Portugal. Corporate: 10% vs 21%. For high earners and entrepreneurs, Bulgaria can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorPortugalBulgaria
Territorial TaxationNoNo
Digital Nomad VisaYesYes
Wealth TaxNoNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
PortugalIFICI (ex-NHR)10% flat rate10 years

Frequently Asked Questions

Which country has lower taxes: Portugal or Bulgaria?
Portugal has a top income tax rate of 48% and corporate tax of 21%. Bulgaria has 10% and 10% respectively. On €100k gross, estimated take-home is €57,800 in Portugal vs €79,720 in Bulgaria. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Portugal or Bulgaria better for expats and digital nomads?
Portugal uses a worldwide tax system and offers the IFICI (ex-NHR) (10% flat rate, 10 years). Bulgaria uses a worldwide tax system. The best choice depends on income type, desired residency duration, and lifestyle preferences.
What is the corporate tax difference between Portugal and Bulgaria?
The statutory corporate tax rate is 21% in Portugal and 10% in Bulgaria. Effective rates can differ significantly due to deductions, loss carry-forwards, and R&D credits. Both countries may offer reduced rates or special regimes for SMEs or qualifying businesses.
Portugal Full Tax Guide Bulgaria Full Tax Guide More Tax Comparisons Special Tax Regimes
Disclaimer: Rates shown are statutory rates for 2026. Effective rates vary with deductions and individual circumstances. Not tax advice.