Portugal

On 30 October 2026, the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) published Circular No. 6/2026, establishing the withholding tax tables applicable to dependent work income and pensions for the Autonomous Region of the Azores for November 2026. This circular implements the regional legislative adjustments to the Personal Income Tax (IRS) withholding rates, reflecting the

On 30 October 2026, the Tax Authority issued Circular No. 5/2026, approving the withholding tax tables for dependent work income and pensions applicable in mainland Portugal for November 2026. These tables reflect the annual IRS bracket updates indexed to the GDP deflator and the State Budget 2026 measures, including the increased tax-free allowance and adjusted

On 29 October 2026, the Portuguese Secretary of State for Budget, José Maria Brandão de Brito, announced a forthcoming “paradigm shift” in fiscal benefits targeting savings products. In an interview with Jornal de Negócios, the official confirmed that the government is preparing a comprehensive reform to be presented in the first half of 2027. The

On 29 October 2026, Portuguese Foreign Minister Paulo Rangel declared Portugal’s support for reducing the European Union’s common external tariff ceiling to 10%. The statement, reported by Lusa news agency, positions Portugal as a proponent of trade liberalization within the EU’s ongoing customs union reform discussions. The proposal aligns with Portugal’s export-oriented economy and its

On 29 October 2026, the Council of Ministers approved the decree-law implementing the 2026 personal income tax (IRS) rate reduction, following parliamentary authorization granted in the State Budget debate. The measure lowers marginal rates across several brackets, aiming to increase disposable income for households amid persistent inflationary pressures. The tax cut is part of the

On 28 October 2026, the Portuguese Parliament approved an amendment to the 2027 State Budget proposal increasing the specific IRS deduction for households with three or more dependents. The measure, supported by a cross-party majority, raises the annual deduction per dependent from €600 to €850 for the third and subsequent children. This targeted relief aims

According to data released on 28 October 2026, revenue from the Municipal Property Transfer Tax (IMT) has more than tripled over the past ten years, reaching a record €1.8 billion in 2025. The surge reflects sustained real estate price appreciation and transaction volumes, driven by foreign investment, tourism-related purchases, and limited housing supply. Consequently, municipalities

On 28 October 2026, the Tax Authority circulated Official Notice No. 90088/2026, announcing the availability of the VAT group adhesion request functionality within the ‘Change of Activity’ declaration on the Finance Portal (Portal das Finanças). This operationalizes Law No. 62/2025 of 27 October, which introduced the VAT group regime allowing financially, economically, and organizationally linked

Effective 1 January 2026, amendments to the IRS Code modify the treatment of capital gains on property sales in two key areas. First, the reinvestment exemption for primary residence proceeds now explicitly includes the purchase of properties classified as “ruins” (ruínas), provided reconstruction is completed within 24 months. Second, the deduction for home office expenses

On 23 October 2026, Portaria No. 467-A/2026/1 revised and fixed the unit tax rates for the Tax on Petroleum and Energy Products (ISP) applicable from 23 October 2026. This monthly adjustment mechanism, governed by Law No. 12-B/2026, tracks international crude oil price movements and EUR/USD exchange rates to maintain fiscal neutrality while ensuring revenue stability.