Digest · Tuesday 13 October 2026
This week: the budget lands, brackets indexed, and a €970 minimum wage
Six things that moved for foreign-owned companies in Portugal between 7 and 13 October, each marked as law, proposal or for information. The 2027 budget is a bill until the final vote on 24 November; we flag every point that rests on it.
Added on 3 November 2026 to complete the archive; it reports what was known on 13 October 2026.
8 Oct
Budget 2027 bill filed in Parliament Proposal
The Government filed the 2027 State Budget, Proposta de Lei 110/XVII/2.ª, on 8 October. Parliament debates and votes it on general principles on 27–28 October, then article by article, with the final vote on 24 November; it is meant to apply from 1 January 2027. Until then every tax measure in it is a proposal. Below are the points in it that matter most for employers.
Update 3 Nov: Parliament approved the bill on general principles on 28 October, with PS, PAN and JPP abstaining. Our 20 October issue covers its headline measures: the 18% corporate rate, IRS brackets, bonuses, Regressar and the SAF-T delay.
Who it affects: Every company planning 2027 budgets and payroll.
8 Oct
Minimum wage: Government commits to €970 for 2027 For information
The report accompanying the budget says the national minimum wage (RMMG) will rise from €920 to €970 a month in 2027, as set in the tripartite pay agreement signed in Concertação Social. The figure is not law yet: it is fixed each year by the Government after consulting the social partners (the 2026 figure came from Decreto-Lei 139/2025). Unions are pushing for €1,000 or more; employer confederations see no reason to revise the agreement.
Who it affects: Employers with staff at or near the minimum wage, and anyone whose pay scales or contracts are pegged to it. The Azores and Madeira set their own, higher figures.
13 Oct
IRS bracket coefficient fixed at 1.0388 In force
Portaria 455/2026/1, published on 13 October, sets the change in the GDP deflator (3.4124%) and in GDP per worker (0.4567%), second quarter of 2026 on the same quarter of 2025. Together they give a coefficient of 1.0388, which the CIRS applies every year to the limits of the IRS brackets (art. 68.º-B(3) CIRS). That is the 3.88% the budget bill uses. The law asks for this portaria by 20 September (art. 68.º-B(4) CIRS); this year it came after the bill. The new bracket table itself only becomes law with the budget.
Who it affects: Resident individuals, and employers: the 2027 withholding tables will be built on the indexed brackets.
Source: Portaria 455/2026/1
OE2027
Budget 2027: solidarity surcharge only from €89,995 Proposal
The 2.5% additional solidarity rate would start at €89,995 of taxable income instead of €80,000, the same point as the indexed top IRS bracket; 5% still applies above €250,000 (art. 68.º-A CIRS, as amended by art. 60.º of the bill). The Finance Minister said that without the change the surcharge would soon reach the seventh and sixth brackets. The most anyone saves is 2.5% of €9,995, about €250 a year.
Who it affects: Resident managers and senior staff with taxable income above €80,000. For joint filers the thresholds apply to half the couple’s income.
OE2027
Budget 2027: tax-free staff housing extended to 2027 Proposal
A permanent home in Portugal provided by the employer would stay free of IRS and social security contributions for all of 2027, up to the rent ceilings of the Programa de Apoio ao Arrendamento (Decreto-Lei 68/2019), even if the property is not in that programme. Employers could depreciate homes they own, build, buy or convert for staff at twice the normal rate of Decreto Regulamentar 25/2009. Employees holding 10% or more of the capital or votes are excluded (art. 70.º of the bill).
Who it affects: Employers relocating staff to Portugal. It does not cover owner-managers with a 10% stake.
OE2027
Budget 2027: IMT bands for housing up 2.3% Proposal
The IMT bands for residential property would rise 2.3% (art. 17.º(1) CIMT, as amended by art. 65.º of the bill). For housing that is not the buyer’s own permanent home, the table every company purchase falls under, 1% would apply up to €108,792 (now €106,346), the 8% band would end at €648,511 (now €633,931), and the flat 6% would give way to 7.5% above €1,177,323 (now €1,150,853). Offices, shops and land stay at 6.5%, buyers controlled from blacklisted jurisdictions at 10%, and non-resident buyers of housing at a flat 7.5%.
Who it affects: Companies buying residential property in 2027. Purchases completed in 2026 use the current table.
What to do this week
- Budget 2027 staff costs on a €970 minimum wage and check which pay scales or contracts are pegged to it. Our first-hire guide sets out the full employer cost.
- If you house relocated staff, keep the rent within the Programa de Apoio ao Arrendamento ceilings and document the arrangement; the 2027 exemption depends on the budget passing. See our guide to hiring non-EU staff.
- Buying residential property through a company? Model IMT on both the current and the proposed table, and check the 7.5% non-resident and 10% blacklist rules first. Our property tax guide walks through them.
- Owner-managers near €80,000 of taxable income: plan the 2027 salary and dividend mix on current rules until the final vote on 24 November. See paying yourself from a Portuguese company.
Not sure which of these touches your company?
Send us your structure and we will tell you, in a paragraph, what this week means for you and what to do before which date.