State Budget 2026: All Tax News and Measures for Families and Businesses
By Hugo Ribeiro , Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting
State Budget 2026: Detailed Analysis of Tax Innovations and Measures for Families and Businesses State Budget 2026: Detailed Analysis of Tax Innovations and Measures for Families and Businesses The State Budget for 2026 (SB 2026), following a complex and at times controversial legislative process, has been approved with a set of measures intended to shape Portugal's economic and social landscape in the coming years. This document, more than a mere instrument of budgetary management, represents a compass for fiscal and social policy, with direct and indirect impacts on families' disposable inco…
Key Takeaways
Minimum Wage: €920 exempt from IRS starting 2026. IRS: Updated brackets, reduced rates from 2nd to 5th tiers. Housing: Increased deductions, expanded Youth IMT, reinforced guarantee. Cultural VAT: 15% deductions on books, theatre, museums (€250/year). Business: 6% VAT for housing construction, reduced IRS for landlords. FAQ
What changes in IRS for 2026? IRS brackets are updated by 3.51%, and rates reduced by 0.3% from the 2nd to 5th brackets. Youth IRS maintains partial exemption.
How does the 2026 State Budget affect housing for young people? Youth IMT is expanded (full exemption up to €330,539), rent deductions increase, and the public guarantee for first-time buyers is reinforced.
When does the new National Minimum Wage come into effect? The National Minimum Wage of €920 comes into effect from January 2026. It remains exempt from IRS due to the increased existence minimum.
What are the new tax measures for businesses in this Budget? Businesses benefit from 6% VAT on housing construction (up to €648,000), and landlords see an IRS reduction from 25% to 10% (rentals).
Can VAT from cultural expenses be deducted in IRS? Yes, 15% of VAT on books, theatre, concerts, and museums can be deducted, up to an annual limit of €250 per household.
State Budget 2026: All Tax News and Measures for Families and Businesses
By Hugo Ribeiro , Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting
State Budget 2026: Detailed Analysis of Tax Innovations and Measures for Families and Businesses State Budget 2026: Detailed Analysis of Tax Innovations and Measures for Families and Businesses The State Budget for 2026 (SB 2026), following a complex and at times controversial legislative process, has been approved with a set of measures intended to shape Portugal's economic and social landscape in the coming years. This document, more than a mere instrument of budgetary management, represents a compass for fiscal and social policy, with direct and indirect impacts on families' disposable inco…
Key Takeaways
Minimum Wage: €920 exempt from IRS starting 2026. IRS: Updated brackets, reduced rates from 2nd to 5th tiers. Housing: Increased deductions, expanded Youth IMT, reinforced guarantee. Cultural VAT: 15% deductions on books, theatre, museums (€250/year). Business: 6% VAT for housing construction, reduced IRS for landlords. FAQ
What changes in IRS for 2026? IRS brackets are updated by 3.51%, and rates reduced by 0.3% from the 2nd to 5th brackets. Youth IRS maintains partial exemption.
How does the 2026 State Budget affect housing for young people? Youth IMT is expanded (full exemption up to €330,539), rent deductions increase, and the public guarantee for first-time buyers is reinforced.
When does the new National Minimum Wage come into effect? The National Minimum Wage of €920 comes into effect from January 2026. It remains exempt from IRS due to the increased existence minimum.
What are the new tax measures for businesses in this Budget? Businesses benefit from 6% VAT on housing construction (up to €648,000), and landlords see an IRS reduction from 25% to 10% (rentals).
Can VAT from cultural expenses be deducted in IRS? Yes, 15% of VAT on books, theatre, concerts, and museums can be deducted, up to an annual limit of €250 per household.