Latest news and stories about fiscal policy in government in Portugal for expats and residents.
The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) has evaluated 31 of the approximately 540 existing tax benefits in Portugal. Director-General Helena Borges stated that the agency is currently assessing another ten incentives to determine their ongoing effectiveness.
France's recurring fiscal deficit challenges and economic pressures are intensifying calls for the European Central Bank to pause its cycle of interest rate hikes, echoing historical debates around Gallic exceptionalism within the European Union.
Mário Centeno warns that current fiscal policies and rising public spending mirror the pre-Troika era, arguing that the government's narrative of austerity avoidance is undermined by a record-high tax burden.
The tax burden on fuel (ISP) is higher for middle-income households than for the poorest, when measured as a percentage of income, because the latter group relies more on public transport, according to a study by the Francisco Manuel dos Santos Foundation. The study 'Portugal Fiscal', authored by tax law professor Sérgio Vasques and economists Susana Peralta and José Pedro Sousa, provides a portrait of the Portuguese tax system in 2025. It finds that as a proportion of gross household income, ISP expenditure peaks among those in the 20th to 40th income percentiles. The researchers also note that while alcohol and tobacco taxes are regressive, fuel taxes affect middle-income earners more significantly due to their reliance on personal vehicles. Additionally, the study highlights that the ongoing electrification of vehicles is contributing to a substantial decline in tax revenue from automotive and fuel-related levies compared to 2004.
6h OE27 refers to the 2027 State Budget. The Parliament is set to vote on the general outline of the Government's budgetary proposal today.
Nuno Félix believes that creating tax benefits is an 'easy temptation' for responding to problems.
The 2027 State Budget bill is, therefore, a calibration budget. It fails to address the central issue—how to simplify a system that accumulates benefits, exceptions, and sectoral contributions?
International Monetary Fund analysts warned on Wednesday that governments must accelerate fiscal consolidation to curb the rise of global public debt, advocating for tax reforms and criticizing broad fuel subsidies. During the release of the new Fiscal Monitor report, the IMF indicated that global public debt reached 94% of GDP in 2025 and is projected to hit 100% by 2029, driven primarily by the world's largest economies. Rodrigo Valdés, director of the IMF's Fiscal Affairs Department, emphasised the urgent need for action, noting that fiscal risks are rising and that countries should begin adjustments before market confidence wanes.
The Irish proposal for the European budget up to 2034 is already facing criticism. Frugal countries are demanding more cuts and an agreement is far from guaranteed. Will Europe be able to reach a consensus?
This is the third proposal drafted by PSD/CDS-PP governments led by Prime Minister Luís Montenegro.
On the day the 2027 State Budget was presented, the topic was central to discussions among leaders of major Portuguese banks at the Money Conference 2026 in Cascais, with a consensus that the current fiscal path must be maintained. BPI CEO João Pedro Oliveira e Costa warned against undoing the progress made on fiscal discipline, while Santander's Isabel Guerreiro emphasised the importance of predictability, faster licensing, and PRR execution. Millennium BCP CEO Miguel Maya also advocated for balanced accounts, suggesting the budget should focus support on the most vulnerable groups, noting that broader structural reforms in housing and justice should occur outside the budget framework. Other points raised included the need to end the stigma surrounding banking profits and the Bank of Portugal Governor's concerns regarding financial risks posed by new technologies.
The submission will be made two days before the deadline.
Home Wealth and Tax Portugal cuts income tax rates in latest fiscal adjustment Portugal cuts income tax rates in latest fiscal adjustment Portugal's Council of Ministers signed off on a cut to personal income tax (IRS) on 17 September.
José Manuel Pureza states that the Prime Minister chooses not to demand greater fiscal solidarity from large economic groups.
There are fiscal anomalies that reveal more about a country's soul and the vision of its political power than entire economic treatises. The recent report by MP Mário Amorim Lopes, from the Liberal Initiative, touches precisely on the heart of one of these deep contradictions: in Portugal, a citizen who wins a prize in...
In addition to taxes, the State coercively collects debts from fees, financial contributions, fines, and other sanctions resulting from judicial decisions related to administrative offences.
A state that spends political energy and media capital pursuing the 0.28% of improper social support payments is not achieving fiscal justice. It is performing fiscal theatre.
The reduction has been a constant trend over the last seven years, particularly affecting verification and compliance actions.
Public administration tax expenditure reached 23,477.3 million euros in 2025, an increase of 2,551.2 million compared to the previous year, equivalent to a year-on-year rise of 12.2%. In relative terms, the weight of fiscal benefits increased again, rising from 7.2% to 7.7% of Gross Domestic Product (GDP), consolidating the trajectory of...
The Liberal Initiative (IL) party states that Portugal remains among the most centralised nations within the OECD.
The 31 tax benefits already evaluated represent 77% of tax expenditure, and the 10 currently under assessment concern benefits whose expiry date is approaching, according to Helena Borges, Director-General of the Tax and Customs Authority.
The number of entities monitored by the Tax Authority's Large Taxpayers Unit (UGC) rose by 31.03% to 4,012 in 2026, according to an official source from the Ministry of Finance who spoke to ECO following the publication in the Diário da República of the order approving the new large taxpayers registry. There are 950 more entities under the fiscal supervision of the Authority.
There are fewer of us, with fewer families and families that are increasingly smaller. We need measures, both fiscal and non-fiscal, so that families can have the children they truly desire.
The head of the order explains that 'VAT on veterinary services for pets is a matter of enormous fiscal injustice'.
An analysis of common arguments against the euro, addressing concerns regarding exchange rate stability, competitiveness, and real wages. The text argues that nominal convergence and fiscal discipline are essential for sustainable economic development, while dismissing the viability of competitive devaluations and refuting the notion that a common currency inevitably leads to lower real wages or increased regional inequality.
Finance Minister Miranda Sarmento states that the country's fiscal situation remains stable and does not face the threat of an excessive deficit procedure.
The IMF Director states that Portugal should take advantage of its current fiscal space.
The 1.6 million euros paid as 'reparation' are not exempt from taxes. In some cases, the financial compensation could be cut to half of the communicated value.
