Tax news in Portugal

Portugal Publishes New Housing Tax Package

Sarmento says he finds it difficult to link a moderate rent of 2,300 euros to price increases

The Minister of Finance stated today that he finds it difficult to understand how defining the concept of 'moderate rent' at 2,300 euros could increase prices, arguing that it decreases the values immediately above, up to 2,600 euros.

“The Construir Portugal package is central to the fiscal strategy to incentivise construction and renting”, says Bruna Melo, an EY specialist

Bruna Melo, a specialist at EY, highlights that the Construir Portugal package is a core component of the government's fiscal strategy aimed at boosting housing construction and the rental market.

Jornal Económico22 Oct

Result of competition for 390 managers and inspectors at the Tax Authority known “in the coming weeks”

The results of the competition for the admission of 390 managers and inspectors to the Tax and Customs Authority (AT) will be released “in the coming weeks,” the Ministry of Finance told the Lusa agency. According to information provided by the AT, the final ranking list for this competition is being finalised and is expected to be approved in the...

IL wants fuel stations to disclose tax burden

The party criticises the Government's measure as 'highly paternalistic' and wants stations to display the tax component per litre, rather than the ISP discount in effect since Saturday.

A good budget for the Government. But what about the Portuguese?

The 2027 State Budget appears politically convenient for the Government and is likely to be approved. While it promises a surplus and debt reduction, the critical question remains whether it effectively addresses Portugal's structural issues, such as low productivity, lack of investment, and public sector inefficiency. The author argues that beyond fiscal discipline, the budget lacks an ambitious strategy for long-term economic transformation and fails to show how it will improve public services, particularly in healthcare, through meaningful structural reform rather than just increased spending.

IRS to be cut in half, but only in November

In November, employees and pensioners will have only 50% of the usual IRS withheld. This is how the tax reduction applied to annual income will be adjusted.

Find out how much more you will receive in November following the 50% cut in withholding tax and the impact on your IRS refund

SIMULATIONS || New IRS withholding tax tables will bring higher salaries and Christmas bonuses to the Portuguese as early as November; however, they will result in an increase in tax payable or a reduction in the refund received next year when the 2026 tax return is filed.

Livre insists on advocating for a reduction of the standard VAT rate from 23% to 21%

Former presidential candidate supported by Livre argued that it is possible, in terms of public finances, to lower the standard VAT rate “progressively.”

"New houses for rent will appear", predicts the Head of the Accountants' Association

Paula Franco believes the new Simplified Affordable Rental Scheme (RSAA) “will have a major impact on the rental market”.

50% cut in November income tax excludes monthly salaries of 18,000 or 20,000 euros

The decree also specifies that those with higher incomes are exempt from this cut.

Net salary increases in November. IRS withholding tax gets a 50% 'discount'

The net income of Portuguese workers and pensioners will increase in November. According to the order published this Wednesday in the Diário da República, salaries and pensions will only be subject to half the IRS withholding tax rate applied since the beginning of the year. However, in December, it will return to...

The tax we choose to donate

The Portuguese people donated almost 75 million euros of their income tax to social institutions in the last declaration. In 2027, the Budget could make this choice more inclusive.

Eleven defendants in Operation “Hermes” remanded in custody

The Lisbon District Judicial Court ordered the preventive detention of 11 defendants this Saturday as part of Operation “Hermes”, a source from the Lisbon District Judicial Court told Lusa. This case, in which 25 defendants are suspected of defrauding the State in a VAT scheme, has been split into two separate proceedings, one...

2027 State Budget: Prime Minister questions PS credibility regarding Housing

During the 2027 State Budget debate, Prime Minister Luís Montenegro clashed with opposition leaders. Mariana Leitão (Iniciativa Liberal) criticised the Socialist Party's 'miserable legacy' in housing, while PS Secretary-General José Luís Carneiro attacked the Government's performance in the Health sector. Montenegro dismissed the PS's proposals on urban leasing as lacking credibility and defended his administration's economic record against criticism from André Ventura (Chega) and Paulo Raimundo (PCP), highlighting economic growth and a lack of tax increases over his 920-day term.

9 PM State Budget: government confirms the updating of IRS tax brackets and the reduction of corporate income tax (IRC)

The government has confirmed the adjustment of personal income tax (IRS) brackets and a decrease in the corporate income tax (IRC) rate as part of the State Budget.

State Budget 2027. Government praises "solid accounts", opposition criticises proposal

The opposition accuses the Government of failing to present measures that address the rising cost of living in the 2027 State Budget. The PSD and CDS-PP are calling on the opposition to approve the document in order to avoid a political crisis.

OE2027: Tax expenditure on life insurance exemptions increases by 180 million

The Stamp Duty exemption applied to premiums and commissions for life insurance will represent a tax expenditure of 524.4 million euros in 2027, an increase of approximately 180 million euros compared to the 340 million euros forecast in the 2026 State Budget. The measure was first introduced in the year 2000.

It is another AD budget that does not increase a single tax

Hugo Carneiro, a PSD deputy, analyses the measures contained in the 2027 State Budget.

2027 State Budget: Increase in specific IRS deduction depends on IAS update

As the specific deduction is equivalent to 8.54 times the value of the IAS and the index currently corresponds to 537.13 euros, the current deduction stands at 4,587.09 euros.

Budget Proposal: 'Troika'-era IRS solidarity tax aligned with the 9th tax bracket

The 2027 State Budget proposal raises the income threshold for the IRS solidarity tax, which has been taxing the highest earners since the 'troika' era, aligning it with the 9th tax bracket.

Government once again postpones obligation to submit accounting SAF-T file

The mandatory submission of the accounting SAF-T file, which consolidates all of a company's accounting and tax information, has been postponed again, according to the proposed 2027 State Budget (OE2027). The document also indicates that PDF invoices will continue to be accepted until the end of...

Tobacco tax expected to generate an additional 139 million for the State in 2027

The State is expected to collect an additional 166 million euros in 2027 from revenues generated by the tobacco tax (IT) and the tax on alcohol, alcoholic beverages, and drinks with added sugar or other sweeteners (IABA), a growth supported by increased consumption. The revenue generated by the tobacco tax...

2027 Budget anticipates new IRS reduction

The State Budget proposal was approved this Thursday by the Government.

8:00 AM. Rubio visits Portugal today and meets with Montenegro

A joint press conference with the Minister of Foreign Affairs is scheduled. Additionally, a new day is expected to be marked by student protests in France.

'Shadow' state budget: What is being negotiated in parallel to the Budget

By stripping the 2027 State Budget proposal of economic policy measures for the third consecutive year, through so-called 'budget riders', the Government is effectively creating a form of shadow budget. Alongside the debate on next year's budget, several issues such as pensions, personal income tax, and the minimum wage are being discussed.

Government guarantees new IRS reduction with tax bracket updates and other adjustments

Joaquim Miranda Sarmento said that, with the state budget that the executive will present, there will be the sixth tax relief since the PSD and CDS-PP have been in government.

PS announces it will enable Government proposals in the energy sector. Follow here

The announced reduction of IRS up to the sixth income bracket is one of the Government's proposals to be debated in this Wednesday's plenary session at the Assembly of the Republic. The extension of the discount on ISP, given the persistent rise in fuel prices, is another matter under discussion in Parliament. In addition to the proposals of...

What could change in personal income tax (IRS) with the 2027 State Budget?

Learn everything about personal income tax (IRS) and discover the evolution of this tax over the last few years. Throughout this week, Expresso analyses, with the support of Deloitte as a knowledge partner, the main measures and challenges of the 2027 State Budget.