What are Portugal´s Income and Housing Measures for 2027?
News Economy Europe - Here are Portugal´s Income and Housing Measures for 2027, according to an announcement by the Government of Portugal on October 9th, 2026. In 2027, the Portuguese Government will continue to act on areas considered priorities for families and businesses, for young people and for the most vulnerable, such as the elderly. Strengthening incomes, reducing taxes on families and businesses, improving healthcare, increasing the supply of public housing, and increasing resources and means for the security forces are some examples.
Here are Portugal´s Income Measures for 2027:
In 2027, Portugal´s National Minimum Wage (SMN) will increase to 970 euros , thus seeking to continue reducing wage disparities. Public administration workers will receive salary increases of 60.52 euros , or a minimum of 2.30% , according to the Multiannual Wage Enhancement Agreement.
For the third consecutive year, no tax increases are planned, particularly consumption taxes , which will not be updated at all, not even to keep pace with inflation.
Furthermore, there will be a further reduction in income tax, amounting to 500 million euros, through the updating of tax brackets and the minimum subsistence level , allowing those earning the minimum wage to remain exempt from paying tax.
This is yet another reduction, in addition to the five in recent years, which will allow for a reduction of €2.9 billion in income tax for families , benefiting approximately 2.9 million households .
Young people up to the age of 35 will continue to be able to benefit from the extended IRS Youth scheme , provided they meet the requirements.
Here are Portugal´s Housing Measures for 2027:
In 2027, Portugal has earmarked €1,513 million for housing promotion and rehabilitation , and the financing of 45,000 new homes not covered by the Resilience and Recovery Program (PRR).
This is yet another action to reinforce the supply of public housing , in addition to the existing tax package that encourages moderate prices in the rental and purchase of housing , notably the reduction of VAT on construction associated with this purpose, and also support for the purchase of a first home such as exemption from IMT (Property Transfer Tax) and IS (Stamp Duty) for young people up to 35 years of age, provided they meet the requirements.
