Latest news and stories about tax cuts in government in Portugal for expats and residents.
Vasco Rosendo, Economics editor at CNN Portugal, states that the Government deliberately postponed the announcement of the pension bonus and the income tax cut until this Tuesday.
Prime Minister Luís Montenegro used the annual Pontal Festival in the Algarve to outline his government's goals, including further income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) cuts and raising the national minimum wage to 1,100 euros by the end of his term. While he avoided specific new announcements, he highlighted economic growth and pledged to continue supporting pensioners if budgetary conditions allow. Opposition parties, including Chega (Chega), criticized the event for lacking concrete answers to current government controversies.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
Chega ("Enough") is a Portuguese far-right populist party founded in 2019 by André Ventura. It positions itself as an anti-establishment movement against what it calls a "rotten and corrupt system" of PS-PSD dominance. The party surged from 1.3% in 2019 to 22.8% in May 2025, becoming parliament's second-largest force with 60 seats. Chega's core platform emphasizes strict immigration control—ending automatic CPLP residency, deporting non-independent immigrants, implementing job-market quotas, and requiring five-year social security contributions before benefit access. It advocates radical constitutional reform, including reducing parliament to 100 members, abolishing the prime minister position for a presidential system, and dismantling public healthcare. Law-and-order policies include life imprisonment and chemical castration proposals.
The party is defined by inflammatory anti-Romani rhetoric, with Ventura convicted multiple times for discrimination. Chega maintains international alignments with European far-right figures including Marine Le Pen, Santiago Abascal, and Matteo Salvini. Mainstream Portuguese parties, including Prime Minister Luís Montenegro's government, have imposed a cordon sanitaire, refusing coalition with Chega despite its parliamentary strength.
Socialist official Carneiro defends the zero VAT policy on food baskets while dismissing internal criticism from João Galamba, framing the disagreement as a natural difference of opinion within the party.
The Portuguese government has introduced a series of fiscal measures, including a reduction in income tax, aimed at alleviating the ongoing cost-of-living crisis for its residents.
Statements by Sérgio Sousa Pinto, a commentator for CNN Portugal, during the special edition of Contrapoder live at i9 Cascais - Living the Future this Friday.
Rising oil prices, tightening interest rates, families struggling to breathe. The “Expresso da Meia-Noite” brought together economist António Nogueira Leite, financial markets specialist Catarina Castro, economist and Socialist Party MP Miguel Costa Matos, and former Secretary of State for Energy João Galamba to dissect the perfect storm hitting Portugal.
Tax experts support the proposed income tax reductions but caution that the economic outlook for Portugal may deteriorate.
The IL parliamentary leader stated this Monday that there is a 'majority of obstructionists' preventing reforms, accusing the PSD of 'buying the votes of the Portuguese', Chega of being afraid, and the PS of being 'political mothballs'. Mário Amorim Lopes was speaking at the opening of the IL parliamentary sessions, which are taking place this Monday and...
The Minister of Environment speaks about support for the most affected sectors. Furthermore, the Liberal Initiative accuses the PSD of trying to buy the Portuguese people's vote with the announcement of an IRS tax cut.
The parliamentary leader of the IL stated today that there is a 'majority of empathisers' preventing reforms, accusing the PSD of 'buying the votes of the Portuguese', the Chega party of being afraid, and the PS of being 'political mothballs'.
The MP began by arguing that Portugal is not 'ungovernable', but rather 'unreformable'.
A country becomes wealthier when it manages to have larger, more productive, more innovative companies capable of paying better wages. It does not become wealthier because the Government announces yet another tax cut. The reduction in personal income tax may alleviate a problem, but it does not solve the issue.
The executive says that the measures announced by Montenegro reduce the room for manoeuvre for State Budget negotiations and warns: 'If anyone wants to impose other measures, they must say which tax will not be lowered.'
The Government has recovered revenue used in 2024 and 2025 and announced an additional cut in IRS tax rates for this year up to the sixth bracket, to be felt as early as the November salary, as well as a bonus for pensioners. Two measures with a total budgetary impact of 800 million euros tied to the promise...
The Socialist Party (PS) criticised the government's new tax cuts and pension supplements, labelling them as opportunistic measures. Meanwhile, the PSD defended the policy, citing strong economic growth, increased employment, and fiscal responsibility as the drivers behind the ability to implement these measures. Other opposition parties, including Livre and the Left Bloc (BE), expressed concerns over the sustainability of these measures and their impact on the cost of living.
Paula Franco considers the new IRS cut a “good measure”, but says that data is still missing to calculate how much each taxpayer will save. The head of the accountants' association explains that the reduction will “cover everyone”.
Alcoutim Municipal Council has approved a package of local tax cuts for 2027, saying it wants to leave more money in residents’ pockets and make the municipality more attractive to The post Alcoutim cuts local taxes to attract new residents, ease pressure on families appeared first on Portugal Resident.
An extraordinary supplement will reach more than two million pensioners receiving up to 1,611.13 euros and will be paid with the December pension. Tax relief on salaries will benefit another two million families and will be felt as early as November.
The government used the parliamentary debate to unveil new measures, including bonuses for pensioners and reductions in personal income tax (IRS).
An extraordinary supplement will reach more than two million pensioners receiving up to 1,611.13 euros and will be paid with the December pension. Tax relief on salaries will benefit another two million families and will be felt as early as November.
The reduction in income tax rates will apply up to the sixth tax bracket, and the model for pensions is expected to be similar to previous years. The budgetary impact is 800 million.
The parliamentary leader of the PSD/Azores believes it is “absolutely fundamental to maintain tax cuts” in the region. The “pace” of “increasing social support” must also be maintained.
The update to the specific deduction—a rule that exempts part of salaries and pensions—and the income tax brackets, applied to 2026 income, will result in a revenue loss of 401 million euros for the State in the 2027 tax settlement. The impact is already included in the Invariant Policy Framework.
The Brazilian parliament has approved a bill to reduce federal taxes on the import, production, and sale of fuels, which will now be sent to President Luiz Inácio Lula da Silva. The Senate approved the proposal on Wednesday with 61 votes in favour and two against, shortly after it passed in the Chamber of Deputies. The measure, supported by the Brazilian government, includes tax cuts for diesel, biodiesel, petrol, ethanol, and aviation kerosene to mitigate the impact of rising international oil prices. Senator Teresa Leitão, the bill's author, highlighted that the text aims to mitigate economic impacts caused by the energy market crisis resulting from the conflict in the Middle East. The bill also includes tax benefits for strategic mineral extraction, funding for high-complexity smart hospitals, and tax exemptions for the 2027 Women's World Cup. Additionally, a Brazilian judge has suspended the crude oil export tax for Petrogal and four other oil companies.
