The OECD advises Portugal to lower taxes on low-wage earners while increasing property taxes and eliminating ineffective tax exemptions. The report, 'Foundations for Growth and Competitiveness 2026', highlights that Portugal's economic performance lags behind advanced economies due to weak long-term productivity growth and labour market inefficiencies. It suggests structural reforms to boost productivity, improve youth and female employment, simplify the tax system, and address housing accessibility by streamlining construction licensing and shifting the tax burden from transactions to recurring property taxes.