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It is often said “new year, new life” and the reality is that January 1st will bring several changes for the Portuguese. Changes to IRS and VAT are planned, in addition to the elimination of tolls on motorways in the interior of the country and the Algarve. Among the changes planned in the ICMS for 2025 there is one that is causing quite a controversy. We are talking about the significant reduction in VAT on bullfighting tickets.
The year 2025 is about to begin and one of the Portuguese people’s greatest desires is financial stability. Each Portuguese person has a different economic situation, but what is certain is that some changes are planned in VAT (Value Added Tax) that will guarantee you some savings at the end of the month. One of them is the reduction of VAT on electricity.
Despite the increase in electricity announced by the regulatory entity for energy services, the drop in VAT to 6% for the first 200 to 300 kWh consumed per month will even allow the electricity bill to drop in January, as advanced by . However, there is another change to VAT that is causing a lot of controversy. The VAT applied to bullfight tickets will increase from 23% to 6%.
As for IR, that is, Personal Income Tax, it is known that the bands will be updated by 4.6%. Added to this change comes another change that will exempt those who earn the minimum wage from paying this tax.
Finally, the Youth Income Tax will also be extended from five to 10 years for workers up to 35 years old. Furthermore, IRS Jovem will now be available to all young people, instead of only being available to graduates.
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