2025-11-03
Tânia de Almeida Ferreira analyses the State Budget and the Tax Competitiveness Index

In an article published in ECO, Tânia de Almeida Ferreira, Partner in the Tax practice at CCA Law Firm, analyses Portugal’s positioning in the International Tax Competitiveness Index, where the country ranks 33rd out of 38 economies, and comments on the Government’s budgetary and tax policy choices within the framework of the Draft State Budget for 2026.

The lawyer considers the document “politically effective, but disappointing for a tax specialist”, highlighting the absence of structural measures capable of improving the country’s tax competitiveness. Even so, she identifies positive signs “Off-Budget”, particularly the gradual reduction of the corporate income tax rate to 17% by 2028 and the introduction of VAT Groups, which “will allow for better cash flow management and reduce procedures, inspections, and refund timeframes”.

Tânia de Almeida Ferreira nevertheless warns that these measures are insufficient: “To climb the ranking, we must be competitive. We need a tax system with low marginal rates, simplified bases, reduced tax compliance, easy to comply with. We won’t get there with Budget and Off-Budget. We need more, much more.”