Between January and September 2026, the Portuguese state collected 51.16 billion euros in tax revenue, a 6.5% increase compared to the same period in 2025. This growth was driven primarily by a 13.5% rise in personal income tax (IRS) and a 9.4% rise in value-added tax (IVA), despite decreases in corporate tax (IRC) and tax on oil products (ISP) receipts.
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The 2027 State Budget proposal maintains a projected 303 million euro reduction in state tax revenue from housing measures. Key components include a 94 million euro impact from reducing VAT on construction to 6% and a 209 million euro impact from lower IRS tax rates for landlords offering 'moderate' rents up to 2,300 euros.
The government's proposed 2027 State Budget forecasts a favorable increase in local government tax revenue, specifically driven by continued activity in the real estate market. This revenue growth is largely tied to the collection of IMI (municipal property tax) and IMT (municipal property transfer tax).
Under the proposed 2027 State Budget, municipalities will receive 3.46 billion euros through the Financial Equilibrium Fund (FEF), representing 19.5% of state tax revenue from IRS, IRC, and VAT. Additionally, local authorities are allocated 748.7 million euros from the 5% share of resident taxpayers' IRS and 135.2 million euros from a 7.5% share of VAT revenue.