Santiago do Cacém municipal tax relief measures

The Santiago do Cacém City Council has approved new measures intended to reduce the tax burden on local residents, scheduled to take effect in 2027. These measures are expected to impact approximately half a million euros in municipal revenue.

The approved plans include the ‘IMI Familiar’ program, which provides fixed deductions for property tax 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 Personal Income Tax (IRS) from 5% to 4.5%, allowing the 0.5% difference to be returned to taxpayers. The municipal property tax (IMI) rate will be maintained at the legal minimum of 0.30%.

Regarding corporate taxation, the council 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. While the IRS refund proposal received support from the STC – Somos Todos Cidadãos and Chega parties, the CDU (PCP/PEV) voted against it. The measures must now be submitted to the Santiago do Cacém Municipal Assembly.