Portugal vs Spain — VAT Comparison 2026
Iberian Peninsula VAT comparison and cross-border trade rules.
| Criteria | Portugal | Spain |
|---|---|---|
| Standard Rate | 23% | 21% |
| Reduced Rates | 6%, 13% | 4%, 10% |
| Registration Threshold | €14,500 annual turnover | No small business exemption |
| Currency | EUR | EUR |
| Filing Frequency | Monthly or quarterly | Quarterly with annual summary |
Key Differences
Portugal has a standard VAT rate of 23% compared to 21% in Spain. This means businesses in Portugal collect more VAT on standard-rated supplies.
Registration thresholds differ significantly: €14,500 annual turnover in Portugal vs No small business exemption in Spain. This affects when small businesses must start charging and collecting VAT.
Penalties Comparison
Portugal
Fines from €150 to €3,750 for filing breaches. Interest on late payments.
Spain
5-20% surcharge for late filing depending on delay. Interest charges on late payments.
Check your compliance
Get a personalized Tax Health Score with actionable recommendations.
Get Tax Health Score