The Minister of Finance admitted today that the Government may lower income tax by a greater margin than provided for in the AD's electoral programme, but did not guarantee that an extraordinary supplement will be paid to pensioners again this year.
Sarmento admits to lowering income tax beyond the AD's plan and does not guarantee a new bonus for pensioners
Tuesday, 31 March 2026RSS
Context & Explainers
The IRS withholding tables (tabelas de retenção na fonte) are government-published schedules that determine how much personal income tax (Imposto sobre o Rendimento das Pessoas Singulares — IRS) employers must deduct from each paycheck. They take into account gross pay, marital status, number of dependents, and disability status.
The tables are updated annually (and sometimes mid-year when budgets change), directly affecting monthly take-home pay. When tables are revised downward, workers see more in their pay packet; when raised, less. Any difference between amounts withheld and the actual tax owed is settled when the annual IRS return (Modelo 3) is filed, typically between April and June.
Employees and pensioners should check the current tables — published by the Autoridade Tributária e Aduaneira (AT) — whenever they change, as the impact on net income can be significant.
Housing fiscal measures are government tax changes or incentives aimed at the property market — examples include changes to property tax (IMI Imposto Municipal sobre Imóveis), stamp or transfer taxes (IMT Imposto Municipal sobre Transmissões Onerosas de Imóveis) and income‑tax (IRS Imposto sobre o Rendimento das Pessoas Singulares) deductions for renovations or rental incentives. The estimated €200–300 million budgetary cost shows the measures have a meaningful impact on public finances and signals whether the government is prioritising tax relief for homeowners, landlords or construction, which can affect property prices and rental markets that matter to expats.
