Portugal or Spain for Taxation

[James Faro]

Hi all,

I have been doing some research on living in either Spain or Portugal.

From what I can gather, Portugal is far better tax-wise,

Until now, I thought both countries were similar in regard to tax. However, looking at the following, Spain is quite prohibitive as:

1. There is a wealth tax. The Spanish government is due to abolish it next
year but saying something and doing something are separate things!
The income that the Spanish government will lose, they are
bound to recoup it from somewhere else.
In Portugal there is NO wealth tax.

2. Inheritance tax has been abolished in Portugal and instead a flat levy
of 10% is charged. Immediate family pay much less.
In Spain there are various bands and in some cases you will be
punished for inheriting wealth!

3.Income tax rates are marginally better in Portugal.

4.A property in Portugal is more secure in investment and re-selling. In Spain, well we all know the hardship it's now causing.

I suppose Spain having a much higher population of 44 million compared to Portugal's 10.6 million have much higher expenditure.

Saying that ,Spain can learn a lot from its little neighbour. Little neighbour but with a bigger and better idea to attract investment.

- James