The European Tax League, Week 1 Standings: Portugal vs Europe

The European Tax League compares Portugal's IFICI expat tax regime against the best equivalent regime in one European country. Same rules every time: €500K salary, best available expat regime, no cherry-picking.

4 editions in. One clear winner.

We're one week into the European Tax League and the picture is already clear. Four of Europe's biggest economies have entered the ring. One has dominated every round.

Here's where things stand after Week 1.

The methodology

Every edition compares Portugal's IFICI regime against one European country's best available expat tax regime. The benchmark is simple:

• Salary: €500K gross

• Regime: Best available expat tax treatment in each country

• Metric: Illustrative take-home after income tax under that regime

• No cherry-picking: Same rules applied consistently across every country

All figures are stylised examples based on qualifying income under each regime's best available treatment. Individual outcomes depend on income structure, personal circumstances, and applicable rules.

Week 1 Standings

🥇 1. Portugal — ~€400K+ take-home

• Regime: IFICI (Incentivo Fiscal à Investigação Científica e Inovação)

• Duration: 10 years

• Rate: 20% flat on qualifying Portuguese source income

• Foreign income: Exemption on most categories of qualifying foreign-source income (except pensions and blacklisted jurisdictions, subject to applicable treaties)

• Salary cap: None

Portugal's IFICI is the benchmark every other country is measured against. A 20% flat rate ceiling on qualifying Portuguese income, plus exemptions on most qualifying foreign income categories, for 10 years with no salary cap.

Four editions in, nothing has come close.

🥈 2. Netherlands — ~€330K take-home

• Regime: 30 Ruling (30%-regeling)

• Duration: 5 years

• Rate: 30% of salary treated as tax-free allowance — standard Dutch progressive rates (top 49.5%) on the remainder

• Salary cap: €233K (index-linked, subject to annual revision)

The Netherlands had a head start. For years, the 30 Ruling made Amsterdam the default landing pad for international talent. But the Dutch government has been systematically dismantling it — capping the salary base, shortening the duration, reducing the allowance percentage in some reform scenarios.

On a €500K salary, the 30 Ruling only covers the first €233K. Everything above is taxed at 49.5% from day one.

*Gap vs Portugal: ~€70K per year.*

3. France — ~€300K-€330K take-home

• Regime: Impatriate Regime (Article 155B)

• Duration: 8 years

• Rate: 45% top rate — impatriation premium and qualifying portions exempt, subject to caps of 30% or 50% depending on package structure

• Salary cap: Exemption capped at 50% of total compensation

France put up the strongest fight of Week 1. The Impatriate Regime is a genuine, well-designed incentive that has attracted real talent to Paris for years. The 2025 reforms kept it competitive.

But 8 years vs 10. Employer-tied vs generally portable. Capped 50% exemption vs 20% flat ceiling. And the Impatriate Regime provides partial relief on qualifying foreign passive income — but not the comprehensive exemption that IFICI offers.

*Gap vs Portugal: ~€70K-€100K per year.*

4. Sweden — ~€285K-€305K take-home

• Regime: Expertskatt

• Duration: 7 years

• Rate: 25% of salary tax-free — remaining 75% taxed at full Swedish progressive rates (top effective 52-55%)

• Salary cap: SEK 88,800/month eligibility floor (2026)

Sweden tried. Expertskatt is a partial solution to a very large problem — 52-55% effective top rates. But 25% exempt means 75% is still taxed at those brutal Swedish rates. And the regime is employer-tied — change jobs, reapply.

After 7 years, Expertskatt expires. Full Swedish rates apply. Portugal still has 3 years of IFICI running.

*Gap vs Portugal: ~€95K-€115K per year.*

5. Germany — ~€262K take-home

• Regime: None

• Duration: Standard progressive PIT applies indefinitely

• Rate: 47.5% top effective rate (income tax + solidarity surcharge)

• Salary cap: Not applicable — no expat regime exists

Germany didn't show up with a plan. Europe's largest economy has no structured personal tax incentive for relocating international talent. Standard progressive rates apply from day one. Employer reimbursements for relocation costs can be tax-free under general rules, but there is no IFICI-style flat rate or broad expat regime.

*Gap vs Portugal: ~€138K per year. The largest gap of Week 1.*

Key insights from Week 1

1. France is Portugal's closest competitor so far — not because the Impatriate Regime is better, but because it's the most thoughtfully designed alternative. 8 years, real exemptions, genuine political commitment to attracting talent.

2. The Netherlands is losing its edge — fast. The 30 Ruling is being dismantled budget cycle by budget cycle. Founders who moved to Amsterdam 3 years ago are already halfway through their regime.

3. Germany's absence is striking — the biggest economy in Europe has simply chosen not to compete on this dimension. No regime, no relief, no plan.

4. The duration gap matters more than the rate gap — Portugal's 10-year runway creates a fundamentally different financial planning horizon than 5, 7, or 8-year regimes with cliff edges at the end.

What's coming in Week 2

Next week we add five more countries to the table — UK, Switzerland, and Belgium, plus the first Friday recap of all countries combined.

The UK just abolished its Non-Dom regime. What replaced it? Switzerland has the legendary lump sum tax — but it doesn't apply to working founders. Belgium's STRIT is newly enhanced for 2025. The table is about to get a lot more interesting.