Proposals approved by Portugal’s right-centre government to reduce personal income tax (IRS) rates this year will bring additional relief of €348 million, to which €115 million euros should be added in 2025, via a refund, for a total of €463 million, according to information released by the government today. The government has approved a new model of rates for the first to eighth income brackets, with changes varying between 0.25 and 3 percentage points compared to rates in force since January 2024, under the 2024 budget of the previous, Socialist government. The new proposals are to be debated in parliament on April 24, with prime minister Luís Montenegro stressing the measure will result in a reduction this year of €348 million in IRS on salaries and pensions.
Cuts in personal income tax mean €348 million in relief this year
