Santiago do Cacém approves local tax relief measures

The Santiago do Cacém City Council has approved new measures to reduce the tax burden on local residents, including the implementation of 'IMI Familiar' and a 0.5% refund of Personal Income Tax (IRS). These measures, which are set to take effect in 2027, are expected to impact approximately half a million euros in municipal revenue.

Under the 'IMI Familiar' plan, fixed deductions will be applied based on the number of dependents: 30 euros for one dependent, 70 euros for two, and 140 euros for households with three or more. Additionally, the council approved reducing the municipal share of IRS from 5% to 4.5%, allowing the 0.5% difference to be returned to local taxpayers. The municipal property tax (IMI) rate will remain at the legal minimum of 0.30%.

The council also decided to maintain the 'taxa de derrama' at 1.5% of taxable profit, while granting exemptions to companies with profits of 150,000 euros or less. The IRS refund proposal received support from the STC – Somos Todos Cidadãos and Chega parties, while the CDU (PCP/PEV) voted against it. The measures must now be submitted to the Santiago do Cacém Municipal Assembly.