Portugal’s tax landscape is entering a new phase of transition. While the previous government focused on the housing crisis and tightening tax benefits for foreigners, the current administration has signaled a clear pivot toward supply-side reforms — prioritizing lower personal and corporate taxes to drive investment and growth.

Key Policy Changes Under Consideration:

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• Personal Income Tax: Reduction in brackets from seven to five, with lower rates for middle-income earners.
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• Corporate Tax: Main rate to fall from 21% to 15%, alongside the elimination of corporate surcharges.
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• Wealth & Crypto: Possible introduction of an inheritance tax targeting high-net-worth individuals (debate ongoing).
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• Housing: Renewed focus on increasing supply and reviewing prior interventionist policies.
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Key Takeaway:

Portugal’s new fiscal direction reflects a pro-growth strategy — aiming to attract capital, simplify taxation, and restore confidence in the domestic economy.