The two systems in 2026
Ireland taxes at 20 % up to 44 000 € for a single person (53 000 € for a married couple with one income, up to 88 000 € with two), 40 % above. It then adds the Universal Social Charge — 0,5 % to 12 012 €, 2 % to 28 700 €, 3 % to 70 044 €, 8 % beyond — and PRSI at 4,2 % on the employee. Tax credits (2 000 € personal + 2 000 € employee) reduce the tax itself, not the income.
Portugal taxes across nine brackets from 12,5 % to 48 % (above 86 634 €), after a 4 587 € deduction on salaries and pensions, adds a solidarity surcharge above 80 000 €, and takes 11 % employee social contributions. Couples split the income.
- 52,2 % Irish marginal cliff (40 % + 8 % USC + 4,2 % PRSI) from about 70 000 €; 48 % + 11 % in Portugal from 86 634 €
- 4 000 € of Irish credits before any tax; 4 587 € deducted from income in Portugal
- Joint filing in Portugal; Ireland transfers part of the band between spouses
- 28 % vs 33 % on capital gains, 28 % vs 33 % on deposit interest
What a single employee pays
| Gross salary | Portugal (IRS + 11 % PRSI-equivalent) | Ireland (income tax + USC + PRSI) |
|---|---|---|
| 30 000 € | about 4 800 € IRS + 3 300 € = 8 100 € | about 2 000 € tax + 430 € USC + 1 260 € PRSI = 3 690 € |
| 45 000 € | about 9 800 € + 4 950 € = 14 750 € | about 5 200 € + 880 € + 1 890 € = 7 970 € |
| 60 000 € | about 15 400 € + 6 600 € = 22 000 € | about 11 200 € + 1 330 € + 2 520 € = 15 050 € |
| 100 000 € | about 31 600 € + 11 000 € = 42 600 € | about 27 200 € + 4 030 € + 4 200 € = 35 430 € |
Figures are indicative and before Portuguese personal credits and Irish reliefs. Two facts stand out: Ireland’s credits keep the total lower at every level shown, and Portugal’s uncapped social contributions widen the gap at the top. On income tax alone Portugal overtakes Ireland only above roughly 90 000 €; once USC, PRSI and the Portuguese contributions are counted, Ireland is the lighter of the two for salaried employees across this range — the opposite of the common assumption. IFICI’s flat 20 % changes the picture for those who qualify.
Couples. Portugal’s quotient halves the income before the table; Ireland lets a married couple use the higher 53 000 € band and transfer credits. A one-earner couple on 60 000 € pays about 10 400 € of IRS in Portugal (before contributions) and about 7 400 € of income tax in Ireland (before USC and PRSI).
Beyond salaries
- Capital income. Portugal 28 %. Ireland: deposit interest 33 % (DIRT), dividends at marginal rates with a PRSI and USC charge, Irish and EU funds 38 % on an eight-year deemed disposal.
- Rental income. Portugal 25 % flat (15 / 10 / 5 % for long leases); Ireland at marginal rates after mortgage interest and costs.
- Pensions. Portugal after the 4 587 € deduction, at the progressive rates; Ireland at 20/40 % with age credits and an exemption for low-income over-65s. Under the treaty an Irish pension is taxed in Portugal once you move.
- Self-employed. Portugal’s simplified regime taxes 75 % of professional turnover; Ireland taxes actual profit and adds 4,2 % PRSI and up to 11 % USC.
Filing
Portugal: online 1 April – 30 June, assessed by 31 August. Ireland: PAYE workers review through Revenue’s online service; self-assessed file Form 11 and pay preliminary tax by 31 October (mid-November online).
We run your Irish and Portuguese income through both systems — with USC, PRSI, the Portuguese contributions and IFICI where it applies — before you fix a date, then file the Portuguese return with the Irish income in annex J. Ask for the comparison.
Questions
Is Portugal cheaper than Ireland on tax?
For a salaried employee up to about 90 000 €, no — Irish credits and the lower social contributions keep the total below Portugal's once USC, PRSI and the 11 % are counted. Above that Portugal's flat 48 % ceiling helps, and IFICI's 20 % beats both for qualifying jobs. For retirees the comparison depends on the pension size and the loss of NHR.
Does Portugal have a USC equivalent?
The solidarity surcharge (2,5 % above 80 000 €, 5 % above 250 000 €) is the nearest, but it starts far higher and touches few people. There is no low-income levy like the USC.
Can I keep contributing to an Irish pension after moving?
You can hold it, but Irish tax relief on new contributions requires Irish earnings. Portugal gives no relief for Irish pension contributions; its own PPR plans give a 20 % credit up to 300–400 € a year.
Sources and official references
- Revenue — tax rates and bands 2026: 20 % to 44 000 € (single), 53 000 € (married one income); personal and employee credits 2 000 € each — checked 18.9.2026
- Revenue — Budget 2026 summary: USC bands 0,5 % (to 12 012 €), 2 % (to 28 700 €), 3 % (to 70 044 €), 8 % above — checked 18.9.2026
- Department of Social Protection — PRSI advance notice 2026: Class A employee 4,20 %, employer 11,25 % — checked 18.9.2026
- Código do IRS, artigo 68.º — 2026 brackets; artigo 68.º-A — solidarity surcharge; artigo 25.º — 8,54 × IAS deduction — checked 18.9.2026
- Código do IRS, artigo 72.º — 28 % on capital income and gains; 25 % on residential rents — checked 18.9.2026