Government: Expat finances news in Lisbon, Lisboa, Portugal

"Habibi, come to Portugal". Lisbon tries to attract business from Qatar

Press review: Housing crisis, unclaimed bodies and coercive collection of school meal debts

Expresso highlights this Friday that it will take 10 years to resolve the housing crisis, citing a shortfall of 300,000 homes estimated by the Bank of Portugal. The paper also reports on 206 unclaimed bodies in Lisbon this year, including 15 children. Nascer do Sol notes that non-resident foreigners will lose free access to the National Health Service. Público focuses on the Brazilian presidential elections and reports that the INEM budget will grow by 30%, though it remains dependent on insurance yet to be approved. Jornal de Notícias covers municipalities using tax authorities to coercively collect unpaid school meal debts. Correio da Manhã reports on a bankruptcy scheme involving lawyer Paulo Topa, who allegedly profited over 9.5 million euros from a failed real estate company. Diário de Notícias highlights the first use of an automated system for medical specialty residency placements, noting that glitches are causing distrust. Negócios reports on the Court of Auditors' warnings regarding tax breaks for skilled foreign workers, and Eco notes that Unbabel investors are at risk of losing tax benefits.

Livre, PCP and BE accuse the Government of ignoring housing difficulties and the cost of living

The positions were taken by the leaders of the three parties in statements to journalists during the CGTP demonstration.

IRS withholding tax rates to halve, but only in November

The Portuguese government, led by Joaquim Miranda Sarmento at the Ministry of Finance, has decided to accelerate part of the recently approved IRS income tax relief by reducing withholding tax rates on salaries and pensions by 50% specifically for the month of November. This measure, supported by Prime Minister Luís Montenegro, aims to provide immediate financial relief to families, helping them manage purchasing power amid rising fuel costs, rather than waiting for tax refunds in 2027. Following the November adjustment, withholding rates will revert to current levels in December. The reduction applies to the first six income tax brackets, with the broader legislative changes being retroactive to January 1, 2026.

Governor calls for “temporary and targeted measures” in response to the cost of living

The Governor of the Bank of Portugal, Álvaro Santos Pereira, argued this Wednesday that income support measures should be temporary and targeted at the most vulnerable families. Even so, he warned that “large packages” of support generate additional budgetary pressure. “The packages of measures should be primarily aimed at families in greatest need,” he said.

President of the Republic calls for a state allied with accountants, featuring stable tax legislation and swift justice

The Head of State spoke this evening at the opening dinner of the 8th Congress of Certified Accountants in Lisbon.

Luís Montenegro announces bonus for pensioners and new IRS reduction up to the sixth bracket

The Prime Minister spoke to the country from the official residence in São Bento, Lisbon.

PCP accuses Government of attacking the Public Social Security with support from IL and Chega

PCP also pointed to the PS's 'complicity in multiple matters' against public Social Security.

Experts propose new public debt instruments to supplement pensions

The goal is to have 'more savings allocation instruments' as substitutes for deposits, such as Savings Certificates or Treasury Certificates.

Isolated reading of Social Security and CGA 'is illusory and incorrect'

The working group created to study the Social Security reform argues that analysing the pension system in isolation constitutes an 'incorrect, incomplete and illusory' reading of the sustainability of Social Security.

Government to move forward "shortly" with tax justice reform

The Minister of Finance stated this Friday, June 19, that the Government will “move forward shortly” with the reform of tax justice, specifically with a review of tax rates. During a speech at the Franco-Portuguese Economic Conference in Lisbon, Joaquim Miranda Sarmento highlighted necessary measures to address the country's main constraints, namely in human capital, bureaucracy, and the labour market. Regarding fiscal simplification, he indicated that the reform of tax justice and tax litigation will proceed shortly, including a review of rates. Furthermore, he highlighted the reform of the State to “extinguish and reduce the number of entities, but above all to combat bureaucracy, and in those entities where” there is “perfect awareness that they are a bureaucratic problem, such as the APA [Portuguese Environment Agency], ICNF [Institute for Nature Conservation and Forests], IRN [Institute of Registries and Notaries], and CCDR [Commission for Coordination and Regional Development].” The minister also signalled the need to continue reducing marginal IRS (personal income tax) and IRC (corporate income tax) rates, noting that even though they are no longer the highest in the OECD, they are “still quite high.” For this year, Miranda Sarmento emphasized that, “despite all the difficulties,” it will be possible to achieve “growth of around 2% of GDP, well above the Eurozone average,” a balanced budget, and continued reduction of public debt. At this conference, focused on relations between Portugal and France, the minister listed examples of investments in Portugal, such as BNP Paribas and Natixis, projects which, as a whole, “are critical to the Portuguese economy.” The banking sector is “another success story,” he added, pointing out that “15 years ago the banks were in a very difficult situation; today they are resilient, well-capitalised, profitable, and proof of this was the purchase of Novo Banco by BPCE.” Miranda Sarmento: tax revenue shows that Portugal is doing better than people say. IRS and IRC reductions “are to be implemented,” guarantees the Secretary of State for the Budget.

Government evaluates IRS reduction in 2027 based on the economy and public accounts

The Minister of Finance reaffirmed this Monday the Government's intention to lower income tax (IRS) again, stating that a reduction in 2027 will only be decided after reviewing the performance of the economy and public accounts. During a conference in Lisbon, Joaquim Miranda Sarmento said that it is important to continue reducing...

Chega proposes retirement after 40 years of contributions or at age 65

The leader of Chega also proposes a maximum pension cap of 4,500 euros.

5 things that will define the day

On the day the Prime Minister travels to Porto, where he meets with the mayors of Porto and Lisbon, the Bank of Portugal publishes its behavioural supervision report and the National Statistics Institute releases a survey on the financial situation of families for 2024. Also, Sonaecom presents its first-quarter results.

Press review: Half of Portuguese people identify with the Constitution and more families will have to pay income tax

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.

Management of the surplus continues at Terreiro do Paço

Sarmento claims victory, but knows he had the help of measures that have limits: salary increases return taxes to the State and the tax cut increases consumption. Editorial by Marta Moitinho Oliveira.

Bankers say Portuguese banks are prepared for the impact of the war against Iran

Executives from major Portuguese banks stated on Tuesday, the 10th, that the sector is prepared for shocks resulting from the war in Iran, citing recent experiences and increased institutional resilience. Leaders from Caixa Geral de Depósitos, Millennium BCP, Santander, BPI, Crédito Agrícola, and Montepio emphasized the importance of risk management, capital liquidity, and adaptability in the face of global volatility, energy price hikes, and potential disruptions to the Strait of Hormuz.

Government tax measures 'unable to halt' the housing crisis

The Lisbon Tenants' Association also says that the increase from €600 to €900 in the cap on the deduction for rents paid is 'clearly unfavourable to tenants'.

Lisbon Municipal Assembly approves full refund of IRS and minimum IMI rate for 2026

The Lisbon Municipal Assembly has approved a measure to fully refund the IRS and set a minimum IMI rate for the year 2026.

PS in Lisbon City Council announces vote against budget for 2026. Chega keeps decision "open"

The PS in the Lisbon City Council announced on Monday that it will vote against the municipal budget proposal for 2026, presented by the PSD/CDS-PP/IL leadership, which governs without an absolute majority, while Chega keeps its voting intention “open”. According to the Socialist councilors, the municipal budget proposal for Lisbon for 2026 "represents an option ...

Lisbon and Setúbal have the highest pensions in the country, Bragança has the lowest

Last year, retirees received an average pension of €652. In Lisbon, Setúbal, and Porto, pensions are above the average, while the rest of the country falls below. Workers are retiring with a pension equivalent to 84% of their net salary.