The municipal councils of Lagoa and Loulé have announced record budgets for 2026, increasing their spending to unprecedented levels.
Loulé’s budget for this year crosses the €220 million mark, around €15 million more than last year, while Lagoa also reaches a historic high of more than €74 million, an €8 million year-on-year increase, the councils of both municipalities have confirmed.
In Loulé, municipal officials say the increase is justified by the municipality’s “robust financial situation”, helped by strong IMT property transfer tax revenues.
Under the leadership of mayor Telmo Pinto, who succeeded fellow Socialist Vítor Aleixo, the council is prioritising housing, education, health and social cohesion.
Indeed, housing is a central pillar of the new budget, with €57.4 million due to be invested in the sector until 2030. Public housing currently represents just 0.7% of Loulé’s housing stock, and the municipality plans to accelerate construction under its Local Housing Strategy, aiming to create 1,500 new housing solutions over the next four years, including partnerships with the private sector.
Education will receive the largest chunk of investment, €92.5 million throughout the coming four years, funding school upgrades and 15 rehabilitation and expansion projects, while €51.4 million is earmarked for health and social intervention, including support for a new Advanced Cancer Diagnostic Centre in the municipality.
Loulé will also maintain one of the lowest municipal tax burdens in the country, setting IMI at the legal minimum of 0.3%, with additional reductions for inland parishes and large families. The council estimates it will forgo €24.5 million in potential revenue in 2026 to ease pressure on households and businesses.
Further west in Lagoa, the municipality’s strategy for 2026 centres on three main priorities: housing construction, replacement of major water supply pipelines, and the requalification of public space. These are supported by five key commitments in education, culture, social action, sport and public space maintenance.
The approved budget will allow Lagoa to continue ongoing projects while launching new public works throughout the year, the municipal authority says, adding that it also aims to strengthen areas where the municipality is already recognised nationally, such as education, sport, social support and culture, while increasing investment in environmental policies, green spaces, civil protection and public safety.
Mayor Luís Encarnação said the financial boost will help the municipality respond to growing demands while preparing for the future.
“It is important to have more financial resources to tackle challenges affecting the population, but also to modernise the municipality and face the major challenges ahead. We know expectations are high, but we have shown we are up to the task,” he said.
Meanwhile, in the central Algarve, São Brás de Alportel has approved its €25 million municipal budget for 2026, with a strong focus on sustainable development, social cohesion and quality of life.
Mayor Marlene Guerreiro said the budget reflects a balanced strategy that combines financial responsibility with continued investment in key public services. Priority areas include housing and social support, with funding for the Local Housing Strategy, support programmes for vulnerable families and expansion of social housing.
Investment will also continue in health, including the new Family Health Unit, as well as education, with school expansions and upgrades. The budget further allocates funds to culture, sport, environmental protection, civil protection and improvements to water supply, sanitation and local road networks.
