Portugal approves income tax cuts for three million families

The government has approved a reduction in IRS rates for the first six income brackets, retroactive to 1 January 2026. Additionally, a 50% reduction in withholding tax on salaries and pensions will apply for the month of November 2026. The Council of Ministers also approved the regulations for the new Nationality Law, which sets residency requirements at seven years for PALOP and EU citizens, and ten years for others, alongside new tests on language, history, and culture.