Latest news and stories about tax reduction in Portugal for expats and residents.
The Portuguese government has decided to maintain current ISP tax reduction levels on diesel and petrol for the upcoming week, despite forecasts of a decline in fuel prices.
Minimum unit tax rates for the ISP on unleaded petrol fall to 199.89 euros per 1,000 litres, and those for diesel drop to 156.66 euros.
The Government will apply a new temporary and extraordinary reduction in the unit rates of the ISP tax on diesel and petrol, following the announcement of new fuel price increases. The Trump Administration is considering plans to occupy or blockade Kharg Island in order to pressure Iran to reopen the Strait of Hormuz. The Pentagon has sent the 31st Marine Expeditionary Unit, a rapid response force, to the Middle East. We are updating all information on the conflict here, minute by minute.
The Government will apply a new temporary and extraordinary reduction in the unit rates of the ISP tax on diesel and petrol, following the announcement of new fuel price increases. The Trump Administration is considering plans to occupy or blockade Kharg Island in order to pressure Iran to reopen the Strait of Hormuz. The Pentagon has sent the 31st Marine Expeditionary Unit, a rapid response force, to the Middle East. We are updating all information on the conflict here, minute by minute.
ISP tax rates on diesel and petrol will fall again through an 'extraordinary and temporary' discount of 2.6 and 1.4 cents per litre, respectively, in mainland Portugal. The actual savings for consumers will be 3.2 cents per litre for diesel and 1.7 cents for petrol, as the reduction in ISP also lowers the VAT impact. This information was provided by the Ministry of Finance on Friday, March 20. The measure concerns the Tax on Petroleum and Energy Products (ISP) and aims to mitigate the effects of the war in the Middle East on the wallets of the Portuguese people. The measure is a direct response to the fuel price hike expected on Monday. Fuel prices are set to soar again next week, with a full tank of diesel expected to cost over 100 euros.
The additional discount was decided by the Government at a time when a new rise in fuel prices is expected for next week.
Faced with another rise in fuel prices, the Government announced this Friday an update to the temporary and extraordinary reduction of unit tax rates on Petroleum and Energy Products (ISP) applicable to diesel and unleaded petrol in mainland Portugal, as both have risen by more than ten cents compared to the week before the attack.
The government has approved new extraordinary reductions in ISP tax rates for mainland Portugal, resulting in savings of 1.8 cents per litre for diesel and 3.3 cents for petrol next week. Including previous temporary discounts, total savings will reach 6.1 cents for diesel and 3.3 cents for petrol compared to early March prices. Unleaded petrol is now included in these tax cuts due to a projected price increase exceeding 10 cents. These measures follow warnings from the National Association of Fuel Retailers (Anarec) regarding significant price hikes driven by geopolitical tensions in the Middle East, specifically the closure of the Strait of Hormuz, which has pushed Brent crude prices above $100 per barrel. In response, the International Energy Agency (IEA) is releasing 400 million barrels from strategic reserves to stabilise supply.
Unleaded petrol is now also covered by this reduction in tax rates.
With the expected rise in diesel prices, the Government has decided to apply a new temporary and extraordinary reduction in the unit rates of the Tax on Petroleum and Energy Products (ISP) applicable to diesel and unleaded petrol in mainland Portugal, as both have risen by more than ten cents compared to the week before the attack on...
Starting Monday, ISP tax rates on road diesel and unleaded petrol will be reduced again as an extraordinary and temporary discount of 1.4 and 2.7 cents per litre, respectively.
The article reports that Portugal has reduced fuel taxes to help limit rising fuel prices at the pump.
The association of fuel retailers reported few instances of fuel shortages due to increased demand in anticipation of rising prices at petrol stations. However, it presents a fiscal challenge to the Government.
The Portuguese government has announced an “extraordinary and temporary” tax reduction of 3.55 cents per liter on fuel, aimed at mitigating the impact of rising fuel prices driven by increased global oil prices amid the conflict in the Middle East. The recent surge in oil prices, with Brent crude surpassing $87 and potentially reaching $120, has led to record-high fuel costs in Portugal, with gasoline reaching over 2 euros per liter in some stations. Despite the tax cut, fuel prices remain high, and in Galicia, some stations are among the most expensive in Spain. The measure seeks to offset the additional VAT revenue from rising prices and provide relief to consumers during this period of geopolitical instability.
Home News Portimão budget approved Portimão budget approved The Municipal Assembly of Portimão, in the Algarve, approved the municipal budget of €98. 3 million for this year, €5. 5 million less than in 2025, with a projected €1.
The leader of the executive highlighted that the approvals confirm and reinforce the region's “growth path” and that the strategy for this is based on balancing public accounts and reducing taxes.
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'.
The Porto City Council approved on Wednesday, with the abstention of the Chega councillor, a reduction in the Personal Income Tax (IRS) collected by the municipality, decreasing from 3% to 2.5% in 2026, while maintaining the Municipal Property Tax (IMI) at 0.324%. The Chega representative, Miguel Corte-Real, praised the decision.
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.
The Council of Ministers approved a bill today aimed at encouraging housing construction and rental through a tax reduction, announced the Minister of the Presidency.
The Council of Ministers has approved a new bill aimed at lowering taxes related to housing construction, in an effort to stimulate the sector.
Simplifying taxation and creating incentives are the main measures suggested by five experts interviewed by Expresso. We asked each for three ideas to help the country save more. Revitalising pension savings plans, reducing taxes, or investing in financial literacy are some of the proposals.
