🇵🇹Portugalvs🇱🇺Luxembourg
Compare tax regimes side-by-side • Live calculation for 2026 • Find the best option for your income
Understanding the Comparison
This comparison shows side-by-side tax calculations for the same income level. The winner is determined by the lowest effective tax rate. All calculations are based on official 2026 tax rates and may vary based on individual circumstances.
Tax Breakdown
Tax Breakdown
Key Tax Differences: Portugal vs Luxembourg
🇵🇹Portugal
- •Tax Regime: NHR 2.0 regime
- •Residency Requirement: Minimum 183 days per year
- •Cryptocurrency Taxation: 28%
- •Dividends Taxation: 28%
- •Social Contributions: 11% employee rate
- •Digital Nomad Visa: €3480/month minimum income
🇱🇺Luxembourg
- •Tax Regime: Progressive regime
- •Residency Requirement: Minimum 183 days per year
- •Cryptocurrency Taxation: Tax-free
- •Dividends Taxation: 21%
- •Social Contributions: 12.55% employee rate
Who Should Choose Portugal vs Luxembourg?
🇵🇹Choose Portugal
Portugal with its NHR 2.0 regime and 47.2% effective tax rate is ideal for professionals seeking tax optimization. This jurisdiction offers competitive rates for various income types and provides clear residency pathways for international professionals.
🇱🇺Choose Luxembourg
Luxembourg with its Progressive regime and 21.3% effective tax rate is ideal for professionals seeking tax optimization. This jurisdiction offers competitive rates for various income types and provides clear residency pathways for international professionals.
Income Tax Brackets Comparison
Understanding the progressive tax structure in Portugal versus Luxembourg helps you estimate your actual tax burden at different income levels. Both countries use bracket systems, but with different thresholds and rates.
🇵🇹Portugal Income Tax Brackets
🇱🇺Luxembourg Income Tax Brackets
Additional Considerations for Tax Residency
- •Cost of living varies significantly between countries and should be factored into your net income calculations
- •Language requirements and local business culture may impact your ability to work effectively
- •Healthcare system quality and costs differ - some countries require private insurance for residents
- •Visa and residency permit requirements vary - consult immigration lawyers for specific pathways
- •Double taxation treaties may affect your tax liability if you maintain ties to your home country
Explore Other Countries
Compare these countries with other European tax jurisdictions
Italy
Progressive + Impatriate Regime
Belgium
Progressive + Expat Regime
Liechtenstein
Progressive
Bulgaria
Flat
Azerbaijan
Flat
Poland
Progressive
Important Disclaimer
Tax calculations are approximate and based on standard scenarios. Actual tax liability may differ based on deductions, exemptions, residency status, and other factors. This tool is for informational purposes only and should not replace professional tax advice. Always consult with a qualified tax advisor for personalized guidance.
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