🇬🇧 United Kingdom vs 🇵🇹 Portugal
Burden and rates
| United Kingdom | Portugal | |
|---|---|---|
| Tax-to-GDP (latest) | 35.3% (2022) | 36.4% (2022) |
| Tax-to-GDP in 2000 | 32.6% | 30.9% |
| Headline PIT rate | 45 (different rates apply to dividend income; Scottish residents are subject to different rates on all types of income; see the UK Individual tax summary for full details) | Residents: 48% plus solidarity surtax of 2.5% on the taxable income exceeding EUR 80,000 and 5% on the amount of taxable income exceeding EUR 250,000. Special tax rates may apply on certain types of income. Non-residents: As a rule, 25% for employment / self-employment and pension income from a Portuguese source. |
| Headline CIT rate | 25 | 19 |
| Standard VAT rate | 20 | 23 |
| Individual CGT | 18% (basic rate) / 24% (higher rate); Certain assets are subject to different CGT rates. See the UK Individual tax summary for capital gain rates. | See Portugal's individual tax summary for capital gain rates. |
| Inheritance tax | The standard inheritance tax rate is 40%. It’s only charged on the part of one's estate that’s above the nil rate band (currently GBP325,000). See the UK Individual tax summary for more information. | Free acquisition of goods by individuals (inheritance and gifts) is taxed under the stamp tax at 10%. |
Headline rates as stated by PwC Worldwide Tax Summaries; tax-to-GDP from OECD Revenue Statistics (Global).
Enforcement powers
| United Kingdom | Portugal | |
|---|---|---|
| Social media & open-web monitoring | Yes — documented practice HMRC guidance states it may observe, monitor, record and retain internet data available to everyone — including public blog and social-network posts with no privacy settings applied. | Not yet assessed |
| AI & machine-learning risk scoring | Yes — documented practice HMRC publishes algorithmic tools under the UK Algorithmic Transparency Recording Standard, including a VAT Return Analysis Tool that flags anomalous values in a trader's VAT return history. | Yes — documented practice Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). |
| Automated bulk data matching | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | Yes — documented practice Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
| Digital platform reporting | Yes — statutory power UK digital platforms must collect, verify and report seller details to HMRC under the OECD model reporting rules. | Yes — statutory power As an EU member state, bound by Council Directive (EU) 2021/514 (DAC7) to require digital platform operators to collect, verify and report sellers’ income to the tax authority, applicable from 1 January 2023. National implementing law varies; this claim records the EU-law obligation, not a particular national statute. |
| Crypto-asset reporting | Yes — statutory power UK cryptoasset service providers must collect and report user and transaction data to HMRC under CARF, with data collection from 1 January 2026. | Yes — statutory power As an EU member state, bound by Council Directive (EU) 2023/2226 (DAC8) to require crypto-asset service providers to report users and transactions to the tax authority, applicable from 1 January 2026. National implementing law varies; this claim records the EU-law obligation, not a particular national statute. |
| Exit tax on individuals | Partial / committed No general exit charge on emigration, but gains realised during a period of temporary non-residence (5 years or less) are taxed in the year of return (HS278). | Yes — statutory power An exit/departure tax applies to individuals leaving Portugal (PwC Worldwide Tax Summaries). |
| Citizenship-based taxation | No — power absent UK tax on foreign income depends on tax residence, not citizenship. | No — power absent Portugal taxes individuals by residence, not citizenship (PwC Worldwide Tax Summaries). |
| Controlled foreign company (CFC) rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Interest limitation rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Country-by-country reporting | Not yet assessed | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (0). |
| Public naming of non-compliant taxpayers | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
Statuses: Law = Yes — statutory power · Practice = Yes — documented practice · Partial = Partial / committed · No = No — power absent · No evidence = No evidence found · — = Not yet assessed. Full evidence quotes and sources are on each country page.