Portugal approves 800 million euro relief package for taxpayers and pensioners

IRS tax reduction pensioner supplement cost of living relief Portuguese economy Luís Montenegro

The Portuguese government has approved an 800 million euro relief package to combat the rising cost of living. The measures consist of two main components: a 400 million euro reduction in IRS income tax and a 400 million euro extraordinary supplement for pensioners.

The IRS reduction targets the first six tax brackets, with rate cuts ranging between 0.3 and 0.5 percentage points. This measure is expected to benefit approximately 2.5 to 2.9 million households and will be reflected in November salaries and Christmas bonuses. The reduction is retroactive to January 2026.

The pension supplement will be a one-time payment in December for over two million pensioners receiving up to 1,611 euros gross monthly. The amount varies based on income: 200 euros for those receiving up to 537.13 euros, 150 euros for those between 537.13 and 1,074.26 euros, and 100 euros for those between 1,074.26 and 1,611.39 euros.

Additionally, the government is extending fuel tax reductions (ISP) until the end of the year and providing 38 million euros in support to sectors heavily impacted by fuel costs, such as transport and fishing. Finance Minister Joaquim Miranda Sarmento noted that despite these expenditures, the country expects to maintain a budget surplus near zero by the end of the year.

Entities

Assembly of the Republic · Council of Ministers · Government of Portugal · Joaquim Miranda Sarmento · Luís Montenegro · Madeira Regional Government · Portugal · Socialist Party

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] The pension bonus will be 200 euros for those receiving up to 537.13 euros. www.abola.pt · it.euronews.com
[● 2 SOURCES] The pension bonus will be 100 euros for those receiving between 1,074 and 1,611 euros. www.abola.pt · it.euronews.com
[● 4 SOURCES] The government will extend the 10 cent per liter discount on agricultural diesel until the end of the year. www.correiodamanhacanada.com · www.radiocampanario.com · www.abola.pt
[● 4 SOURCES] Pensioners will receive a one-time bonus in December. www.radiocampanario.com · www.abola.pt · it.euronews.com
[● 3 SOURCES] The pension bonus will be 150 euros for those receiving between 537.13 and 1,074 euros. www.abola.pt · it.euronews.com · www.diarioviseu.pt
[○ 1 SOURCE] The IRS reduction is expected to affect approximately 2.9 million households. www.radiocampanario.com
[○ 1 SOURCE] The government is reintroducing support for sectors exposed to rising fuel costs.
[● 6 SOURCES] The government approved a reduction in IRS income tax up to the sixth bracket. www.radiocampanario.com · www.abola.pt · it.euronews.com · www.correiodamanhacanada.com · rr.pt · +1 more
[● 2 SOURCES] Finance Minister Joaquim Miranda Sarmento expects a budget surplus near zero for the year. www.cmjornal.pt · www.jornaldenegocios.pt
[● 4 SOURCES] The tax relief will be reflected in November salaries and Christmas bonuses. rr.pt · terrademirandanoticias.pt · www.radiocampanario.com · eco.sapo.pt
[● 4 SOURCES] The IRS reduction is the fifth such decrease implemented by the current government administration. canalalentejo.sapo.pt · rr.pt · terrademirandanoticias.pt · sapo.pt
[● 7 SOURCES] The Portuguese government approved a reduction in IRS tax rates for the 1st to 6th brackets. canalalentejo.sapo.pt · rr.pt · terrademirandanoticias.pt · sapo.pt · www.correiodamanhacanada.com · +2 more