A table published mid‑week reduces the rates, putting more money into workers' bank accounts each month for those who do not receive pay rises in 2026.
Cut in withholding tax gives workers an extra €12 to €21 per month
Sunday, 11 January 2026RSS
Context & Explainers
Withholding tax is the income tax deducted at source from salaries by employers, known in Portuguese as retenção na fonte. A recent change reduced these monthly deductions by roughly €12–€21 for many workers, so take-home pay will rise by about that amount depending on your bracket and family situation. For expats, this affects your net salary immediately but doesn’t change your annual tax liability — you may still need to reconcile taxes when filing your return.
