Latest news and stories about income tax in Portugal for expats and residents.
The head of the Order of Certified Accountants argues that there is fiscal space for further income tax reductions this year, despite warnings from the Finance Minister regarding future budgetary constraints and potential adjustments to tax refunds.
Mariana Leitão criticises the Prime Minister for not considering the acceleration of inflation to 3.4% in April to be “alarming”. IL advocates for an income tax cut to provide relief to families.
The effective personal income tax (IRS) rate has been decreasing annually, dropping to 11.65% in 2024, according to statistics from the Finance Portal. This rate, which was 13.05% in 2022 and 12.85% in 2023, represents the ratio between tax paid and total taxpayer income. Out of 6.2 million households that filed returns, only 3.4 million were required to pay tax. The data also highlights variations by marital status, region, and income source, with higher effective rates observed in districts like Lisbon, Setúbal, and Porto due to higher income levels.
The Constitution of the Republic turns 50 this Thursday, with Público highlighting that half of the Portuguese population identifies with it, while only 10% do not. A study by the IPPS-Iscte institute, authored by Pedro Adão e Silva and Isabel Flores, reveals that 58% of respondents believe the Constitution should be revised, particularly to criminalise illicit enrichment and reduce the number of MPs. Meanwhile, Jornal de Notícias and Correio da Manhã report that due to lower tax withholding rates, many taxpayers will receive smaller refunds or will have to pay additional income tax this year. Additionally, Correio da Manhã reports that former minister Mira Amaral was arrested by the police on suspicion of domestic violence at a clinic in Lisbon, an allegation he denies.
Workers eligible for the Youth IRS (IRS Jovem) will be able to file their income tax returns via the Automatic IRS system for the first time this year, covering over 200,000 young people. The Secretary of State for Tax Affairs, Cláudia Reis Duarte, noted that the system is expected to process around two million returns, up from 1.7 million last year. While the automatic process simplifies filing, taxpayers are advised to verify all pre-filled data, including income and deductions, and must file manually if they have foreign bank accounts or need to provide additional information.
There are more councils that keep the full amount than those that return everything to residents.
Vítor Costa, executive editor of CNN Portugal, explains the impact of the new IRS tables on Portuguese salaries.
More than two hundred municipal councils are forgoing all or part of the IRS revenue they would be entitled to this year. António José Seguro will receive €1.56 million in state subsidy, €470,000 more than he expected at the start of the race for the presidency (Belém), while André Ventura estimated earnings of €400,000...
Article 119 of the IRS Code establishes a set of reporting obligations for entities that pay income, contributing to the reliability of the tax information that underpins the calculation of tax due by taxpayers. Despite the increasing digitisation of tax processes and the sometimes entrenched perception that some of these ...
Salaries paid in January could rise by as much as €22 due to updated IRS (personal income tax) tables being applied.
With the new year underway, the Government has published the IRS withholding tables that will be applied to salaries and pensions throughout 2026. Simulations carried out by EY for ECO show that the net monthly income of several workers in Portugal will increase, with some even ...
The new IRS withholding tables that will apply to wages and pensions in 2026 have been published on the Finance Portal, reflecting the IRS cut and ensuring tax exemption for amounts up to €920.
Home News Income taxes in Portugal to be reduced Income taxes in Portugal to be reduced To reflect the new reduction in income tax at the start of 2026, the government will need to update the withholding tax tables applied to employees and pensioners.
Home News Personal income tax refund approved Personal income tax refund approved Funchal’s Municipal Assembly has approved the municipality’s 2026 budget and fiscal package, maintaining a 5 percent personal income tax refund, the minimum 0.
The Municipal Chamber of Aveiro approves a tax package for 2026. Taxes and fees remain unchanged, and there is a reduction in the income tax share. This edition marks the third week of 'Happy Holidays'.
In this episode, we discuss the disparity in wealth distribution worldwide. We cover the general strike scheduled for this Thursday. We also talk about the government's measure to reduce income tax to 10% for landlords who put their properties on the rental market. We conclude with the vote for the new president of the Eurogroup.
All rental contracts with rents within the so-called moderate values (i.e., up to 2,300 euros per month) will be subject to the 10% income tax proposed by the Government for property income, regardless of the duration of the contracts, as long as they comply with the limits set out in the Civil Code. According to a clarification ...
The reduction of VAT to 6% in construction and the decrease of income tax from 25% to 10% on rents are “positive measures that will make a huge difference” in the housing sector, believes the Aprop leader.
Property owners with rented properties may soon see a significant reduction in their tax bill. The housing bill submitted by the Government to the Assembly of the Republic on Tuesday proposes that the autonomous income tax rate on rental income decreases from 25% to 10% for those who charge rents up to ...
Tax expert Nuno Oliveira Garcia analyses the final version of the State Budget for 2026 and explains whether taxpayers will save or pay more in income tax, property tax, and capital gains tax on inheritances.
The tax authority clarifies that it is possible to move the amount after ten years without any penalties
