Homeowners with variable-rate mortgages will see monthly payments increase by up to 18 euros this month as Euribor rates react to geopolitical tensions. Data from the National Statistics Institute (Instituto Nacional de Estatística or INE) shows inflation rose to 2.7% in March, largely driven by higher fuel costs. These market shifts are affecting both existing contracts and new loans, including those with mixed-rate options.

Taxpayers have until the end of today to dispute expense values on the Finance Portal (Portal das Finanças) before the income tax (IRS) filing period begins on Wednesday. The President of the Republic also approved the expansion of the automatic tax return (declaração automática) to include more young taxpayers under the revised Youth IRS (IRS Jovem) rules. Experts warn that changes to withholding tax (retenção na fonte) tables last year may result in smaller refunds for many households.

The Ministry of Finance (Ministério das Finanças) confirmed that young people benefiting from the youth tax regime (IRS Jovem) will now be covered by the automatic tax return (IRS Automático). This change, effective this year, removes the requirement for manual filing for eligible taxpayers under the “Modelo 3” form. The measure aims to simplify the tax settlement process for younger residents.

Taxpayers have until Tuesday, March 31, to contest the value of expenses recorded by the tax authority for 2024 income. Residents should check the Portal das Finanças to verify that health, education, and general family expenses are correctly listed before the official tax filing period begins on April 1. This is the final opportunity to ensure all tax deductions (deduções à coleta) are accurately applied to the upcoming IRS return.

The Portuguese Association of Insurers (Associação Portuguesa de Seguradores or APS) has revised the estimated cost of damages from early 2024 storms upward to one billion euros. While insurers have already paid out over 260 million euros, many residents in hard-hit areas like Arruda dos Vinhos remain displaced due to slow state aid and severe infrastructure damage. Property owners should ensure all storm-related claims are documented as the total volume of reported losses continues to rise. Residents in affected regions should check with local councils regarding the status of state support applications.

A new analysis indicates that Portugal is among the Eurozone countries most affected by European Central Bank (Banco Central Europeu) interest rate increases. Because a high proportion of Portuguese mortgages (crédito habitação) have variable rates, rising costs lead to a sharper contraction in household spending compared to other European nations. Economists also warn that the national economy is showing signs of slowing down due to broader European trends and geopolitical tensions. Those with variable-rate mortgages should monitor ECB policy shifts closely for impacts on their monthly budgets.

Minimum banking service accounts (Serviços Mínimos Bancários or SMB) reached a record 265,627 at the end of 2025, according to the Bank of Portugal (Banco de Portugal). These accounts cost approximately €5.37 per year and provide essential services like a debit card, home banking, and MB Way. Residents looking to reduce banking fees should note that existing current accounts (contas de depósito à ordem) can often be converted to this lower-cost format.

The Tax and Customs Authority has introduced changes to the personal income tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) return forms for young workers. Starting April 1, those eligible for the Youth IRS (IRS Jovem) must use a new field in Annex A (Anexo A) to opt into the updated tax regime. Young tax-paying residents should ensure they use the correct codes to benefit from the significant tax exemptions available under the new rules.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira) clarified that Non-Habitual Residents (Residentes Não Habituais or NHR) can cancel their status to benefit from the Youth IRS (IRS Jovem) regime instead. This option is available to those who have never utilized the NHR tax benefits and meet the age requirements for the youth scheme. Taxpayers should consult a professional to determine which regime offers greater savings before the April filing deadline.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira) has clarified that the capital gains tax (mais-valias) exemption for reinvesting in a primary residence is limited when a property owned by one person is sold to buy a home jointly. In such cases, the tax benefit only applies to the share of the new property corresponding to the original owner, typically 50%. Homeowners planning to sell a property they purchased while single to buy a new home with a partner should be aware of these potential tax liabilities.

Severe weather earlier this year has led to 616 loans being placed under moratorium at Crédito Agrícola, totaling €124 million in debt relief for affected customers. The damage was particularly heavy in the central region, with the municipality of Arganil alone reporting €1 million in losses to local roads and infrastructure. Local authorities are still working to restore access to areas like Piódão, where landslides have interrupted traffic. Residents in the central interior should be aware of ongoing road repairs and check with their financial institutions if they require assistance due to weather-related property damage.

Fitch Ratings kept Portugal's sovereign rating unchanged at A but upgraded the outlook to positive, citing expectations that public debt will decline significantly over 2026–2029 thanks to prudent fiscal policy. The move follows a similar outlook upgrade from S&P at the end of February, suggesting rating agencies are seeing lower medium‑term deficits. The change could help Portugal's borrowing costs and influence investor confidence; residents who follow government borrowing and interest‑rate trends should note possible knock‑on effects.

The Institute for Employment and Professional Training (Instituto do Emprego e Formação Profissional or IEFP) approved 390 applications for an extraordinary fund to maintain jobs and support self‑employed workers hit by storm Kristin, allocating just over €11 million. The measure complements parliamentary emergency support for storm‑affected workers and aims to preserve payrolls in damaged businesses. Employers and affected workers should consult IEFP guidance on eligibility and payments.

Allocation of pensions that combine contributions to Social Security and the Caixa Geral de Aposentações remains complex and currently averages about seven months. The president of the Social Security Information Institute told ECO that processing times should improve and that changes will take effect by June. The backlog and complexity affect retirees whose records span both regimes, and the institute is promising faster decisions in the coming months. Those awaiting joint pensions should keep documents ready and monitor communications from Social Security (Segurança Social) and their pension offices.

ECO summarises monthly tax and reporting obligations for companies and households, noting invoicing rules under Model 10 (Modelo 10) and a March 2 deadline for the IRS Model 37 (Modelo 37) declaration listed by EContas. The piece is a reminder that businesses and families must keep on top of multiple filings this month to avoid penalties. Taxpayers and business owners should check the full EContas checklist and their AT online account for specific deadlines.

Lenders warn that mortgage repayments that reset every six months will rise as reference rates remain high, meaning many borrowers face bigger instalments when their contracts reprice. The report says mortgages indexed to short‑term rates and updated semi‑annually will be most exposed, prompting some buyers to seek renegotiation or refinancing. Homeowners with variable contracts should check their loan terms and speak with their bank about options.

Taxpayers must submit changes in household composition and validate deductible expenses on the Tax Authority Portal (Portal das Finanças) and confirm receipts via E‑Fatura before the deadline on Monday, according to tax guidance. Missing the window can mean lost deductions or delayed tax refunds, so residents who paid eligible expenses or had family changes this year should log in and check their records now. Those uncertain about document requirements should contact an accountant or the tax helpline.

The government raised the minimum wage to €920 for 2026, up €50 from €870, and announced support measures for businesses and workers including simplified layoff rules and expanded income support. The change affects paychecks from next year and is part of a broader income agreement the government cites to boost household income. Low‑paid workers will see higher take‑home pay, while employers should plan for higher payroll costs and check whether sector agreements or contracts change. Workers and small employers should watch official calendars for the implementation date and payroll guidance.

A regulator instruction requires banks to report sales of credit portfolios to the Bank of Portugal (Banco de Portugal) starting this Wednesday, RTP reports. The measure forces lenders to notify the supervisor when they sell loans or debt portfolios, increasing transparency about transfers of non‑performing and performing credits. Borrowers whose debts are sold and investors in credit products may see faster notifications and should check statements and communications from their bank. Borrowers and those with outstanding loans should watch for bank notices about any transfer of their debt.

The Lisbon Stock Exchange (Bolsa de Lisboa) closed up 1.71% at 9,245.67 points, reaching levels not seen since June 2008, Lusa reports via RTP. Gains in stocks such as NOS and Mota‑Engil drove the rise; investors should note recent volatility and consult advisers before trading.

The Tax Authority (Autoridade Tributária e Aduaneira) has warned taxpayers about fraudulent SMS and email messages designed to trick recipients into visiting malicious pages or making improper payments, Correio da Manhã and Observador report. Authorities advise checking communications through official Tax Authority channels rather than following links in unsolicited messages.

The indebtedness of Portugal's non‑financial sector — households, companies and public administrations — fell to €851.3 billion in 2025, equivalent to 277.9% of GDP, the lowest level in the series, the Bank of Portugal (Banco de Portugal) reports. The decline reflects strong economic performance even as nominal debt rose by €28.9 billion; the lower ratio may ease some pressure on public finances. Residents and investors should note the improved debt‑to‑GDP metric, but also that nominal indebtedness remains high.

Euribor rose on Monday for the three‑month (2.034%) and six‑month (2.145%) tenors while the 12‑month rate held at 2.205%, ECO reports. Shorter‑term mortgage rates or loans that reprice frequently may become costlier at the next reset. Those with variable‑rate mortgages or planning purchases should check loan conditions and speak with lenders or advisers.

A Portugal Resident guide notes that how you structure assets while resident in Portugal can change your tax position, who inherits them and the taxes your estate pays. The article recommends reviewing account ownership, beneficiary designations and where funds are held, because small changes can shift tax treatment. Residents with significant portfolios should get tailored advice from a Portuguese tax adviser.

Observador reports that over the past decade foreign taxpayers in Portugal have become younger and increasingly receive family benefits, with concentrations now in the Lisbon, Faro and Setúbal districts. The shift affects benefit patterns and local public-service demand in those regions. Those advising immigrant households or working in local administrations should note the changing demographic and benefit profile.

The positive balance between contributions and benefits has risen more than nine times in 11 years. The number of women has increased 4.5 times and the number of men 6.1 times. Statistics will be available monthly starting this Friday.

Euribor movements were mixed on Thursday: the three‑month rate rose, the six‑month rate fell (to about 2.137%) and the 12‑month rate stayed unchanged, ECO reports. Separately, RTP says the average mortgage interest rate for new loans fell to 3.111% in January. Homeowners with variable or recently indexed mortgages should check which Euribor term their loan follows, since short‑term swings can change monthly payments.

The Insurance and Pension Funds Supervisory Authority (Autoridade de Supervisão de Seguros e Fundos de Pensões or ASF) says about 49% of homes exposed in municipalities hit by the storm did not have insurance covering storms or floods, RTP reports. Insurers have received roughly 114,000 claims and paid about €42 million so far, Correio da Manhã adds, signaling a large uninsured population and likely delays in payouts. Homeowners and renters should check their policies, submit claims promptly and expect processing times to be stretched.

Observador reports that using a loan moratorium does not place clients on the Bank of Portugal (Banco de Portugal or BdP)'s list of problematic borrowers, addressing borrower concerns after the calamity. The article aims to clarify whether moratoria affect credit records; borrowers should check communications from their bank and the BdP for details on how measures appear on their files.

ECO reports that the Euribor moved higher at three months (2.011%) and six months (2.159%) on Tuesday, while the 12-month rate fell to 2.216%. The three-month rate remains below the six- and 12-month figures but the short-term rise matters for borrowers on variable mortgages tied to monthly repricing. Homeowners with mortgages linked to 3- or 6-month Euribor should check their repayment schedule and contact lenders if they expect pressure on cash flow.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) says taxpayers can validate invoices related to the 2025 IRS on the Portal until 2 March, not the usual 28 February, RTP and Correio da Manhã report. The short extension affects anyone who itemises deductions and must confirm invoices on the AT site before the new deadline. Log into the tax portal, confirm your invoices and keep digital receipts in case of queries. Taxpaying residents should act before 2 March to avoid missing deductible expenses.

Update: Deadline falls on Monday 2 March, AT confirms

Diário de Notícias reports AT confirmed by email that because 28 February is a Saturday this year the validation deadline moves to the next working day, Monday 2 March; RTP and CNN Portugal issued alerts reminding taxpayers the Portal will accept invoices up to that date.

Euribor rates moved unevenly on Monday: the three-month rate held at 1.999%, the six-month rose to 2.155% while the 12-month fell to 2.236%. The three-month rate remains below the six- and 12-month rates, a pattern that affects variable-rate mortgages tied to short-term fixings. Variable-rate borrowers and those renewing mortgages should watch the short-term curve and talk to lenders about how shifts may alter monthly payments. Mortgage holders tied to Euribor should monitor future fixings and lender communications.

Update: ECO confirms today's mixed Euribor fixings

ECO's market note records the same fixings — three-month 1.999%, six-month 2.155%, twelve-month 2.236% — and reiterates that the three-month fixing remains below longer maturities, a pattern that can affect monthly payments for variable-rate borrowers.

European Central Bank president Christine Lagarde told the Munich Security Conference she rejects a tax on capital that does not remain in Europe and instead favours incentives to keep private investment in the single market. She said roughly 37% of European companies are adopting artificial intelligence in production, and argued incentives and regulatory simplification can attract and retain capital better than punitive measures. Investors and business owners should watch EU-level debates on incentives and any policy shifts that could affect cross-border investment.

CNN Portugal reports storm damage will squeeze household budgets but does not expect product shortages on shelves. The Confederation of Farmers of Portugal's secretary-general told reporters that the 'food basket' price has risen about 26% in recent years, and recent weather will add pressure to farmers' costs. Shoppers and household budgeters should expect higher prices for some fresh goods in coming weeks.

A Diário de Notícias press review reports consecutive rises in the cost of the food basket, which this week reached a four-year high. The coverage links the increases to recent bad weather that damaged crops and disrupted supply chains, and analysts expect upward pressure on grocery bills to continue in the near term. Households should expect higher supermarket costs and consider comparing prices or adjusting shopping habits.