This guide to the State Budget Law 2025 (Law 45-A/2024 of December 31) provides a detailed overview of the main tax measures and incentives introduced by the Portuguese Government that impact companies directly.
Barring a few reformulations and adjustments, the State Budget Law 2025 largely confirms most of the measures proposed in the initial State Budget Proposal. Notable changes include the extraordinary support scheme for electricity and gas costs and the incentive for company recapitalization, which garnered significant consensus during parliamentary discussions. However, there was less agreement on the reduction of the nominal corporate income tax (“CIT”) rate, which was a major point of debate.
This guide is not an analytical document—rather, it is an easy-to-use tool for companies to understand and benefit from the new tax provisions and incentives in the State Budget Law 2025. However, further in-depth analysis may be needed for specific applications.
Content
- Introduction
- Measures impacting companies
- Reduction of corporate income tax rate
- Reduction of autonomous taxation (tributação autónoma) rates and increase in acquisition cost limits
- Productivity and performance bonuses, profit sharing, and balance-sheet bonuses
- Health insurance
- Meal allowance in card form
- Tax incentive for salary increases
- Incentivize for company capitalization
- Incentive for company recapitalization
- Other matters
- Extraordinary support scheme for agricultural production costs
- Extension of tax benefits