Both countries have special expat regimes that slash taxes—but they work differently. Spain's Beckham Law offers 24% flat tax on Spanish-source income up to €600,000 for 6 years. Portugal's NHR 2.0 (from 2024) gives 20% flat tax on Portuguese-source income for 10 years, but foreign pension income is now taxed at 10% (was 0% under old NHR). At €100,000: standard Spain charges ~€32,000, standard Portugal ~€35,000. But under special regimes: Spain charges €24,000 (Beckham), Portugal €20,000 (NHR). Choose Spain if: you earn employment income in-country. Choose Portugal if: you have foreign-source income or want the longer 10-year regime.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: March 2026

The Big Picture

🇪🇸 Spain

47%

Top Rate

Beckham Law: 24% flat option

🇵🇹 Portugal

48%

Top Rate

NHR 2.0: 20% flat option

Typical Annual Savings

At €100,000 income:

€4,000

That is €333/month back in your pocket!

Tax Savings by Income Level

IncomeES TaxPT TaxSavings10-Year
€50,000 (standard) €13,500€14,800Spain saves €1,300€13,000
€75,000 (standard) €22,500€24,000Spain saves €1,500€15,000
€100,000 (standard) €32,000€35,500Spain saves €3,500€35,000
€100,000 (Beckham Law) €24,000 (24% flat)N/ASpain Beckham: -€8K vs standard€80,000
€100,000 (NHR 2.0) N/A€20,000 (20% flat)Portugal NHR: -€15K vs standard€150,000
€200,000 (standard) €79,000€83,000Spain saves €4,000€40,000
💡

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Spain Pros and Cons

✅ Pros

  • Beckham Law: 24% flat rate on Spanish income up to €600,000/year for 6 years
  • Lower standard rates: Spain hits 45% at €60,000, Portugal hits 48% at €78,834
  • Regional variation: Madrid and Andalusia offer lower regional rates
  • No wealth tax in Madrid: Save 1-3.5% annually on net assets over €700,000

❌ Cons

  • Wealth tax in most regions: 0.2-3.5% on net assets over €700,000
  • Beckham Law requires employer: Self-employed cannot apply
  • Exit tax: 23% on unrealized gains if leaving after 10+ years as resident
  • Complex autonomous community system: Tax rates vary by region up to 3%

Portugal Pros and Cons

✅ Pros

  • NHR 2.0: 20% flat rate on Portuguese-source professional income for 10 years (4 years longer than Beckham)
  • Foreign dividends/interest: Often exempt or low-taxed under NHR
  • No wealth tax: Unlike Spain, Portugal doesn't tax net assets
  • No inheritance tax: Only 10% stamp duty applies (Spain has regional inheritance tax up to 34%)

❌ Cons

  • NHR 2.0 is stricter: Must work in high-value-added profession or for certified company
  • Foreign pensions now taxed 10%: Old NHR gave 0%, change caused controversy
  • Higher standard rates: 48% at €78,834 vs Spain's 45% at €60,000
  • Social security 11%: Employees pay more than Spain's 6.35%

Frequently Asked Questions

Q: How much tax will I pay at €100,000 in Spain vs Portugal?

Standard rates: Spain ~€32,000, Portugal ~€35,500. Special regimes change everything: Spain's Beckham Law = €24,000 (24% flat), Portugal's NHR 2.0 = €20,000 (20% flat). If you qualify for either regime, Portugal's NHR saves €4,000/year more than Beckham Law.

Q: What's the difference between Beckham Law and NHR 2.0?

Beckham Law (Spain): 24% flat rate for 6 years on income up to €600,000—requires employment by a Spanish company. NHR 2.0 (Portugal): 20% flat rate for 10 years on qualifying income—requires working in a 'high-value-added activity' or for a certified employer. NHR is better if you qualify.

Q: Which country is better for retirees with foreign pensions?

Portugal was famous for 0% tax on foreign pensions under old NHR—that's gone. NHR 2.0 taxes foreign pensions at 10%. Spain taxes foreign pensions at regular rates (up to 47%). Portugal still wins, but the advantage shrank significantly in 2024.

Q: Does Spain or Portugal have a wealth tax?

Spain: Yes, 0.2-3.5% on net assets over €700,000 in most regions (Madrid exempts). Portugal: No wealth tax. For someone with €2 million net worth, this could mean €20,000+/year in Spain vs €0 in Portugal—a massive difference for the wealthy.

Q: Which country has better taxes for digital nomads and remote workers?

Portugal wins. NHR 2.0's 20% flat rate applies to professional income for 10 years. Spain's Beckham Law requires a Spanish employer—most remote workers can't qualify. Portugal also has a digital nomad visa (D8) with clear path to NHR. Spain's nomad visa doesn't automatically grant Beckham Law access.

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