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Portuguese municipal and national tax policy updates

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-13 16:47 UTC → 2026-10-19 08:34 UTC · added ~~removed~~

Several Portuguese municipalities have finalized their fiscal policies and tax rates for 2027. In Castelo Branco, the Municipal Assembly approved measures including maintaining the minimum Municipal Property Tax (IMI) rate at 0.3% and extending the exemption period for primary residences by two years. The local IRS rate will be reduced from 0.75% to 0.5%, and fixed IMI deductions were approved based on the number of dependents. Similarly, Cinfães approved an IMI rate of 0.3% and implemented tax reductions for families with dependents, alongside a 3% IRS rate. In Portalegre, the assembly decided to maintain the IMI rate for urban buildings at 0.30% and the IRS rate at 3.25%, while also maintaining the exemption from the Derrama tax. Portalegre’s Mayor, Fermelinda Carvalho, noted that maintaining these rates serves as “an incentive for residents.” Further updates show Cantanhede will keep its IMI at 0.38% for urban buildings and continue tax benefits for families with dependents, offering deductions ranging from 30 to 140 euros depending on the number of children. Cantanhede also maintains a Derrama tax exemption for small businesses with an annual turnover up to 150,000 euros, a move estimated to reduce annual revenue by over 2.4 million euros. Sintra has also opted to maintain its primary rates for 2027, setting the IMI at the 0.30% legal minimum and the variable IRS share at 3.5%. Sintra will also keep the Derrama tax at 1.5% for companies exceeding 150,000 euros in turnover, while exempting those below that threshold. At the national level, a proposed 2027 State Budget suggests increasing the exemption threshold for the Municipal Property Transfer Tax (IMT) on permanent primary residences. If approved, the exemption limit would rise from €106,346 to €108,792, a 2.3% update to all tax brackets.

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