Prime Minister Luís Montenegro announced that income tax will decrease in November, representing a significant tax relief for Portuguese taxpayers. This reduction is part of a set of measures to boost the economy and support families.
The measure has retroactive effects from January 2026, which means taxpayers may benefit from refunds related to the first months of the year. This retroactive approach aims to compensate taxpayers for the period prior to the implementation of the reduction.
The bill to amend income tax will be submitted to Parliament next week, thus beginning the legislative process to formalize this measure. The government expects the proposal to be approved quickly so that the practical effects can be felt by taxpayers.
With this measure, taxpayers may receive two salaries and one subsidy with values above what was planned by Christmas, representing significant financial relief at the end of the year. The government justifies this decision as a response to the need to support the purchasing power of Portuguese families.
