Municipalities to forgo 238 million euros in IRS revenue in favour of families in 2027

For the 2027 tax year, 209 out of 308 Portuguese municipalities have decided to reduce or eliminate their share of the IRS (personal income tax) collected from residents. Of these, 44 municipalities will apply a 0% participation rate, returning the full 5% share to residents, while 165 others have opted for partial reductions. The remaining 99 municipalities will retain the maximum 5% participation rate.