Portugal
Portugal improves the tax index, but keeps the 33rd place
Publication: ECO
Author: ECO
Source published: 19/10/2026, 08:17:50 UTC
Briefing created: 19/10/2026, 08:43:07 UTC
Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 19/10/2026, 08:41:24 UTC.
Briefings
Portugal improved its fiscal competitiveness score from 58.4 to 59.6 in the 2026 OECD Index, moving from 35th to 33rd place. This represents the country's third-place improvement since the 2025 edition, driven by reduced corporate tax rates and personal income tax adjustments. However, the methodology changed, and the 2026 ranking relies on recalculated 2025 data rather than direct comparisons with prior years. Despite gains, Portugal remains 34th in corporate tax competitiveness and 19th in personal taxation, with significant weaknesses in high marginal rates and investment deduction rules.
Key points
- Portugal improved its fiscal competitiveness score from 58.4 to 59.6 points in the 2026 OECD Index, moving from 35th to 33rd place.
- The improvement is the country's third-place gain since the 2025 edition, driven by reduced corporate tax rates and personal income tax adjustments.
Context
The 2026 OECD Index evaluates fiscal competitiveness and neutrality, combining 43 variables to assess tax structures. Portugal's rise reflects recent reforms reducing corporate and personal tax rates, though it remains behind major economies like the UK and Germany.
Limitations
The ranking relies on recalculated 2025 data due to methodology changes, making direct comparisons with prior years unreliable. The 2026 score reflects the latest 2025 tax rates rather than historical trends.
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