The Municipality of Portimão will move forward, in 2026, with a set of measures to reduce the tax burden on families and companies, predicting global savings estimated at around 1.8 million euros for the municipality’s taxpayers.
Among the main measures is the reduction of the Municipal Property Tax (IMI) rate for assessed urban buildings, which goes from 0.38% to 0.37%. The municipality also maintains and reinforces tax benefits in terms of IMI for own and permanent housing, with increases associated with the number of dependents.
It is also planned to extend, for a further two years, the IMI exemption for properties intended for personal and permanent housing with a tax asset value of up to 125,000 euros. Within the scope of the Personal Income Tax (IRS), the municipality’s variable participation is set at 3.5%, allowing a greater tax return to citizens, to be reflected in the declarations to be submitted in 2027.
With regard to companies, the Municipality of Portimão establishes a total exemption from Derrama for entities based in the municipality with a turnover of up to 150,000 euros, covering the majority of the local business sector. For the remaining companies, a surcharge rate of 0.9% will be applied.
According to the municipality, this set of measures reinforces a fiscal policy aimed at social justice, support for families, the appreciation of local companies and the stimulation of economic growth, whilst ensuring financial sustainability and the continuity of public investment.
The Municipality also recalls that, after several years of rigorous financial management, compliance with the legally stipulated debt limit was achieved in 2023, and the exit from the Municipal Adjustment Plan (PAM) was formalized in October 2024, which allowed the recovery of full financial autonomy.
“This new framework now allows us to move forward with a tax policy that is more favorable to citizens, while maintaining budgetary responsibility”, concludes.
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