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Tânia de Almeida Ferreira, Partner and Head of CCA’s Tax practice, appeared on Notícias 6 da Tarde, broadcast by RTP Notícias, to discuss Portugal’s proposed State Budget for 2027, focusing on the impact of the latest personal income tax (IRS) reduction on households’ net income.
During her intervention, Tânia explained that the actual impact of this reduction is expected to be limited, particularly in light of the tax changes introduced over recent years.
She noted that personal income tax had already been reduced earlier this year through adjustments to the tax brackets, emphasising that the measures now proposed largely follow mechanisms already established under Portuguese law.
Tânia also pointed out that recent State Budgets have focused primarily on incremental adjustments rather than substantial reforms to the Portuguese tax system.
Consequently, despite the announced reduction, the overall effect on households’ disposable income is expected to remain modest, with no significant changes to the existing tax structure.
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