Digest · Tuesday 27 October 2026
This week: an IRS law without rates, more time for the FCT, and the budget on the floor
Five things that moved for foreign-owned companies in Portugal between 21 and 27 October, each marked as law or proposal. 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 27 October 2026.
22 Oct
IRS cut: the authorising law is published, the rates still need a decree-law In force
Lei 64-B/2026 was published on 22 October (DR 205/2026, Supplement) and took effect the next day. It does not amend the IRS Code itself: it authorises the Government to lower the general rates of the first six brackets, the cut promulgated on 20 October and covered in our previous issue. The authorisation lasts 180 days. Until the Government approves and publishes the decree-law, the current rate table and the 2026 withholding tables stay in place.
Update 3 Nov: The Council of Ministers approved the decree-law on 29 October, with effect from 1 January 2026. As of 3 November we had not found it in the Diário da República.
Who it affects: Resident employees and owner-managers on payroll, and the employers who explain their 2027 tax position to them.
Source: Lei 64-B/2026 (DRE)
21 Oct
Work Compensation Fund: the 31 December deadline will be extended Proposal
About €434 million is still held in employers’ Fundo de Compensação do Trabalho (FCT) accounts; under current rules, balances not used by 31 December 2026 pass to the guarantee fund (FGCT). After the social-partner meeting on 21 October the Labour Minister said the deadline will be extended, but its length is open: two employer confederations and the UGT asked for six months. Employers also want balances under about €1,000 (some 70% of cases) to be withdrawable without tying them to training, staff housing, joint investments or severance. At the same meeting the Minister said the €970 minimum wage for 2027 stands.
Update 3 Nov: No decision on the new deadline had been published by 3 November.
Who it affects: Any company that employed staff in Portugal while FCT contributions were due (until 2023) and still has a balance.
Source: ECO; Jornal de Negócios (press; no official text yet)
27 Oct
Budget 2027 reaches the floor; the PS abstention secures the first vote Proposal
The general debate on Proposta de Lei 110/XVII opened on 27 October, with the vote on 28 October. PSD and CDS-PP vote for and the PS has announced it will abstain, so the bill will clear this stage. Ministerial hearings run to 6 November, also the deadline for parties’ amendments; detailed votes start on 18 November and the final vote is on 24 November. Every tax measure in it, including IRC at 18%, remains a proposal until then.
Update 3 Nov: Approved in general on 28 October: PSD and CDS-PP for; PS, PAN and JPP abstaining.
Who it affects: Every company planning 2027: amendments can still change the measures until 24 November.
Source: Parlamento, Proposta de Lei 110/XVII; Lusa
26 Oct
Fuel tax discount reset for the week from 26 October In force
Portaria 467-A/2026/1, published on 23 October, sets the mainland ISP rate from 26 October at €258.13 per 1,000 litres of road diesel and €436.04 for unleaded petrol. The temporary discount, which hands back the extra VAT collected when pump prices rise more than 10 cents above the week of 2–6 March, is €103.47 per 1,000 litres on diesel and €61.48 on petrol. Pumps must show the combined ISP and VAT reduction: €0.241 a litre on diesel and €0.218 on petrol. The Government resets the discount every week.
Who it affects: Companies with vehicle fleets, transport and logistics. The rates apply on the mainland only; Madeira and the Azores set their own.
Source: Portaria 467-A/2026/1
22 Oct
New workplace limits for lead and diisocyanates In force 2 Nov
Decreto-Lei 203/2026, published on 22 October, transposes Directive (EU) 2024/869 by amending the national rules on carcinogens and on chemical agents at work (Decreto-Lei 301/2000 and Decreto-Lei 24/2012). It lowers the occupational exposure limits for lead and diisocyanates, with transitional values until the end of 2028 and a stricter biological limit for lead in blood from 2029. It takes effect on the first working day of November, which is 2 November.
Who it affects: Manufacturers, workshops and construction firms that use lead, or paints, foams, adhesives and coatings containing diisocyanates. Office-based companies are not affected.
Source: Decreto-Lei 203/2026 (DRE)
What to do this week
- Keep running payroll on the 2026 tables, including the 50% November withholding. The new rates arrive only with the decree-law, and any difference is settled in the 2027 return. Our guide to paying yourself from a Portuguese company shows how salary and dividends interact.
- Check your FCT balance on the Fundos de Compensação portal and decide how to use it: training, staff housing support or severance. Plan on 31 December until an extension is actually published.
- If your staff handle lead, or isocyanate paints, foams or adhesives, update the risk assessment and health surveillance for the limits in force from 2 November.
- Plan 2027 on current law, with IRC at 19%, until the final budget vote on 24 November. Our corporate tax guide for 2025–2028 shows the path.
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.