On a $100,000 salary, you'd take home $68,647 in Spain (Madrid) versus $56,880 in Portugal — a difference of $11,767/year ($981/month).
Tax Breakdown Comparison
Spain
2025 tax year
Take-Home Pay
$68,647
$5,721/mo
Effective Rate
31.4%
of gross
Portugal
2025 tax year
Take-Home Pay
$56,880
$4,740/mo
Effective Rate
43.1%
of gross
Effective Tax Rate by Income
Shows effective tax rate (total tax / gross income) at different income levels in USD
Life & Taxes
What it's like to live and earn in each country
Sun, Sea, and Sangria
Whether you are a digital nomad seeking Lisbon's tech hubs or a retiree dreaming of an Andalusian villa, both countries offer a magnetic pull for those chasing a slower pace of life. Spain tends to draw the high-energy socialites and families, while Portugal attracts a more bohemian, understated crowd looking for Atlantic breezes and a quiet coastal escape.
The Daily Grind Reimagined
Life in Spain is defined by late-night tapas and bustling plazas, where the cost of living feels like a bargain for the world-class infrastructure you enjoy. Meanwhile, Portugal offers a more intimate, village-like vibe even in its cities, providing a rugged charm and a hospitality that makes every newcomer feel like a local from day one.
A Tale of Two Tables
Spain keeps things simple with fewer tax brackets, making it relatively straightforward for mid-to-high earners, though the top rates can kick in quite quickly. Portugal takes a more granular approach with a nine-bracket system that allows for a smoother climb up the tax ladder, though its top marginal rate sits slightly higher for the highest earners.
The Safety Net Split
Your contributions in both nations fund robust social security systems that ensure you are taken care of, but the mechanics differ. While Spain utilizes a combined state and regional model that can vary depending on where you settle, Portugal maintains a unified mainland structure that funds its comprehensive public services without a cap on employee contributions.
The Modern Nomad’s Choice
Choosing between the two often comes down to your career stage; Spain’s generous personal allowance and fixed expense deductions are a boon for full-time employees. However, if you prefer a progressive system that scales more gently through the lower income levels, Portugal’s nuanced brackets might be the winning ticket for your Mediterranean adventure.
Compare all 140+ countries
See how Spain and Portugal rank globally