Latest news and stories about tax policy in europe in Portugal for expats and residents.
The European Commission has advised against general corporate income tax cuts, labeling them an inefficient way to stimulate investment. In its 2026 Annual Fiscal Report, the commission suggests that Portugal should instead focus on targeted measures such as investment tax credits and accelerated depreciation to support technological and energy transitions.
Lisbon has joined major European cities like Barcelona and Milan in rolling back tax incentives for digital nomads and restricting short-term rentals to address severe housing shortages and market saturation.
The German tech company DE-CIX believes that Europe should further standardise the fees charged to data centres. The CEO of the company, which specialises in internet exchange points, Ivo Ivanov, advocates for a model where taxes are assigned according to the energy and storage capacity of the facility, up to...
The European Commission recommends tax changes to increase the number of homes on the market and more healthcare professionals. Brussels warns of a deviation in public spending, but the 2025 surplus and this year's balanced budget ensure that the country faces no consequences for now.
The head of the International Monetary Fund's European department believes that European governments are failing to target support to the most vulnerable, making room for generalized measures that could prove costly to each country's finances.
Commission president calls for next EU budget to have more money that doesn't come from national coffers.
The European Commission has warned Spain that reducing VAT on fossil fuels to 10%, a measure recently announced by Pedro Sánchez's government to ease the burden on families facing rising fuel prices due to the war in the Middle East, violates European regulations, reports El País. Brussels sent a warning letter to the Spanish executive in late March, stating that the EU VAT directive does not allow for a reduced rate on fuel supplies. The Spanish government defends the tax relief as a temporary measure to combat the crisis. Poland has also been warned by the Commission. Meanwhile, in Portugal, the government led by Luís Montenegro continues to apply tax discounts on the Tax on Petroleum Products, having requested authorization from the Assembly of the Republic to temporarily lower the ISP rate beyond statutory minimums, while remaining within the limits imposed by the EC.
The Government wants the European Commission to move forward again with an extraordinary tax on the excess profits of energy companies, reviving the logic of the European regulation approved in 2022 to respond to the shock caused at the time by the war in Ukraine. In a letter dated April 3, the Finance Ministers of Portugal, Germany, Italy, ...
Five European Union finance ministers are calling for the creation of a windfall tax on energy company profits in response to rising fuel prices caused by the war with Iran, according to a letter addressed to the European Commission and seen by Reuters. The finance ministers of Portugal, Germany, Italy, Spain, and Austria made this joint appeal in a letter dated Friday, April 3, to European Commissioner for Climate Action Wopke Hoekstra. They argue the measure would signal unity and ensure that those profiting from the consequences of the war contribute to easing the burden on the public. Oil and gas prices have soared since the start of US and Israeli attacks on Iran on February 28, creating a price shock similar to the 2022 energy crisis. The ministers are urging the Commission to develop a similar EU-wide instrument with a solid legal basis, though the letter does not specify the tax rate or the companies to be targeted.
The European Commission announced this Friday that it will present proposals to combat high energy prices, which include taxing electricity less than fossil fuels, and warned of the 'limited room for manoeuvre' regarding national support measures. 'Regarding the political response, at last week's European Council meeting, the European Commission was requested...'
The Secretary of State for Fiscal Affairs, Cláudia Reis Duarte, admitted on Tuesday in Lisbon that the reduction in VAT to 6% on the construction of housing for sale or The post 6% VAT on housing limited by EU’s legal framework appeared first on Portugal Resident.
The European Commission today called on European Union (EU) member states to support the most vulnerable consumers due to high energy prices, lower taxes on electricity, and avoid supply cuts.
The European Commission today called on European Union (EU) member states to support the most vulnerable consumers due to high energy prices, lower taxes on electricity, and avoid supply cuts.
The Secretary of State for Tax Affairs, Cláudia Reis Duarte, admitted this Tuesday in Lisbon that the reduction of VAT to 6% on the construction of housing for sale or rent is naturally conditioned by the European legal framework. The official explained that the European legal framework only allows for a reduced VAT rate to be established for construction.
The article does not specifically mention Portugal. Instead, it discusses concerns raised by the Socialists and Democrats regarding a US-EU tax deal brokered in January, which exempts American multinationals from parts of a global minimum corporate tax agreement aimed at curbing tax competition. The S&D group urges EU Commissioner Hoekstra to reveal the economic impact and revenue losses for EU countries, emphasizing the potential distortion of fair taxation and the risk of corporate relocations. The broader context involves Europe's need to develop alternative tax strategies to ensure fair digital and corporate taxation, especially as the US deal undermines the original global agreement aimed at increasing EU tax revenues and promoting tax justice.
The Government stated today that it trusts the European Commission will have “no objections” to the discount on the Tax on Petroleum and Energy Products (ISP) for diesel, as it is “extraordinary and temporary” due to the war in the Middle East.
