Iceland or Portugal: which taxes less?

Both tax systems side by side, headline rates and the gap between them.

Level pegging: Iceland and Portugal weigh about the same on the taxpayer.

Tax Iceland Portugal Gap
Corporate income tax headline rate 20% 19% +1.0 points
Personal income tax top bracket 0% to 46% 14.5% to 48% −2.0 points
VAT standard rate 24% 23% +1.0 points

Detailed schedules

Corporate income tax

Iceland

n/a

Portugal

General regime 18% in 2027, 17% in 2028 19%
SMEs: first €50,000 of profit 15%
See the Iceland page See the Portugal page