Income Tax deduction will double from the third child onwards. It will be 600 euros

The CDS proposal was approved by Parliament this Thursday. The measure will come into force in stages between 2027 and 2028.

A CDS-PP proposal to reinforce tax incentives for birth rates through the increase in the deduction for IRS collection for families with three or more children was approved this Thursday in Parliament.

The proposal provides double the benefit currently in forceincreasing from the current R$300 to R$600 per year for each dependent from the third child onwards, up to six years of age.

Presented at the last CDS congress, the measure must be integrated into the next State Budget to come into force in a phased manner between 2027 and 2028. In the first year of application, the deduction will increase to 450 euros for each third and subsequent dependents, reaching 600 euros per year in the following year.

The parliamentary leader and vice-president of the CDS-PP, Paulo Núncio, justified the proposal with the need to respond to “very serious demographic crisis” that the country is going through. According to the deputy, only around 4% of Portuguese families have three or more children, with there being a significant difference between the number of children that families have and the number they would like to have.

According to party estimates, the reinforcement of tax deduction will have a budget impact of around 20 million euros per year. The CDS maintains, however, that the gradual implementation of the measure ensures its financial sustainability, explains the .

In addition to the change in the Income Tax regime, the centrists also saw the approval of a draft resolution that recommends that the government draw up a national birth rate strategy. The proposed measures include new tax incentives on family IMI, ISV and IUC, benefits for companies that create daycare centers or promote work-life balance policies, as well as strengthening the public daycare network and the number of places available.

The party also defends tax advantages for companies that hire pregnant women or parents with young children, as well as incentives to adopt flexible working hours and other measures that facilitate reconciliation between work and family.