The Municipality of Portimão will reduce the tax burden on households and businesses in 2026, a move expected to generate overall savings of around €1.8 million for families and companies in the municipality.
Key measures include:
- A reduction in the Municipal Property Tax (IMI) rate on assessed urban properties, from 0.38% to 0.37%;
- The maintenance and reinforcement of IMI tax benefits for owner-occupied permanent residences, with increases based on the number of dependants;
- The extension, for a further two years, of IMI exemption for properties used as permanent primary residences with a taxable asset value of up to €125,000;
- The setting of the municipality’s variable participation rate in Personal Income Tax (IRS) at 3.5%, allowing for higher tax refunds to residents, to be reflected in tax returns filed in 2027;
- Full exemption from the Municipal Surtax (Derrama) for companies based in the municipality with annual turnover of up to €150,000, covering the majority of the local business fabric;
- The application of a 0.9% Derrama rate for remaining companies.
Through this package of measures, the Municipality of Portimão reinforces a fiscal policy focused on social justice, support for families, the strengthening of local businesses and the promotion of economic growth, while simultaneously ensuring financial sustainability and the continuity of public investment.
It should be recalled that, following several years of rigorous financial management, the Municipality reached the legally established debt limit in 2023 and formally exited the Municipal Adjustment Programme (PAM) in October 2024, thereby recovering full financial autonomy.
This new framework now allows the municipality to implement a more favourable tax policy for residents, while maintaining budgetary responsibility.
