Portugal New Tax and Social Program until 2028
The Potrugal government has approved the State Program of the XXIV Constitutional Government, covering the period until 2028. This action plan has already been presented in parliament and will be implemented gradually after its approval.
The program represents a significant change in Portugal’s life compared to the previous government. It addresses many aspects, but in this article, we will discuss three of the most relevant topics for our readers: taxes, immigration policy, and housing.
Regarding taxes, the Prime Minister announced a plan to reduce income tax (IRS) rates for citizens up to the 8th group, leading to an overall tax reduction of approximately 1.5 billion euros compared to the previous year. Changes in other areas of taxation are also proposed:
- Reduction of maximum IRS tax rates for individuals (up to the 8th group) by 0.5% – 3% compared to 2023.
- Introduction of a special income tax IRS Jovem for youth up to 35 years old, with a reduction of rates by 2/3 from the current ones. The maximum rate of this tax will be 15%, but it will not apply to incomes falling into the maximum 8th income group.
- Abolition of some taxes when purchasing housing for individuals up to 35 years old.
- Gradual reduction of corporate tax (IRC) rates for companies over the next three years until reaching a basic rate of 15%.
- Reduction of taxation for transportation companies by 20%.
- Significant reduction or abolition of some taxes related to construction and development of territories, including setting a minimum VAT rate of 6% for such works and services.
You can reach the full document via this link.
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