Tag Archives: Portugal

Mortgage credit stabilizes in August after months of increases

25/09/2025NewsEuribor, families, mortgage credit, Portugal, real estate marketadmin

Portuguese families breathe a sigh of relief with the pause in rising installments, although amounts remain historically high.

After successive months of increases, mortgage payments in Portugal stabilized in August, following the ECB’s decision to keep interest rates unchanged. This pause has brought some relief to families, who have faced significant hikes over the past two years.

According to data from the Bank of Portugal, the average of new installments remained practically unchanged compared to July, reflecting the stabilization of Euribor rates. However, despite the absence of new increases, costs remain high and represent a significant share of households’ disposable income.

Experts warn that the situation still requires caution. Although there is the prospect of interest rate cuts in 2025, the sustainability of mortgage credit will depend on the evolution of the economy and the ability to maintain employment levels. Many households are still under financial strain, which calls for support measures and close monitoring by the authorities.

For families, stabilization is a positive sign and allows some medium-term planning. However, the future of mortgage credit in Portugal will continue to depend on the balance between European monetary policy, the stability of the banking sector, and the resilience of the national economy.

Minimum wage in Portugal rises to 965 euros in 2025

23/09/2025Newseconomy, Government, income, Minimum wage, Portugaladmin

Measure is part of the Government’s commitment to strengthen household income and bring Portugal closer to the European wage average.

The Government has announced an increase in the national minimum wage to 965 euros starting in January 2025, fulfilling the goal set in the income and competitiveness agreement. The measure aims to continue the path of wage appreciation, launched several years ago, and support families facing high living costs.

According to the executive, the increase results from concerted dialogue with social partners, seeking to balance business needs with the urgency of improving workers’ purchasing power. This update will have a direct impact on around 800,000 people, representing a significant reinforcement of disposable income.

Despite the positive nature of the measure, some business associations warn of potential adaptation challenges in sectors with lower productivity. Even so, the Government is committed to supporting companies through competitiveness incentives and training programs.

Experts emphasize that the increase in the minimum wage will also have indirect effects, boosting domestic consumption and stimulating the economy. However, they warn that it is essential to monitor the impact on the labor market and ensure that wage appreciation progresses in line with productivity gains.

Fitch upgrades Portugal’s rating to “A” due to fiscal strength

19/09/2025Newsfiscal strength, Fitch, Portugal, public debt, ratingadmin

The Fitch agency highlights consistent primary surpluses, debt reduction, and a debt profile centered on fixed rates as decisive factors for improving the country’s credit rating.

The financial rating agency Fitch recently announced the upgrade of Portugal’s credit rating, which rose from “A-” to “A.” This decision reflects growing confidence in the country’s ability to maintain a solid fiscal trajectory, even amid international economic uncertainty. The agency stressed that consistent management of public accounts and the gradual reduction of debt were key factors in the rating upgrade.

According to Fitch, the positive performance is largely due to the successive primary surpluses achieved by Portugal. These results demonstrate an ongoing effort to control public spending and responsibly manage state finances. In addition, the debt structure now shows a more robust profile, with extended maturities and a higher percentage of debt issued at fixed interest rates, reducing exposure to market fluctuations.

Another highlighted element was Portugal’s ability to face the challenges posed by low inflation and the economic slowdown in Europe. Although GDP growth may moderate in the coming years, Fitch believes that budgetary discipline and the commitment to financial stability will remain factors of resilience. The agency also noted that the country has benefited from effective fiscal containment policies and the sound implementation of European funds, such as the Recovery and Resilience Plan (RRP).

This rating upgrade is positive news for the Portuguese economy, as it improves risk perception among international investors. In practice, it may translate into lower financing costs for the state and national companies, strengthening the competitiveness of the economy. The rating increase also sends a signal of confidence to markets, showing that Portugal is on a sustainable path of public debt management and strengthening its external financial position.

Portugal’s Budget Surplus in 2024 Reaches 0.7% of GDP

30/06/2025Newsbudget surplus, GDP, INE, Portugal, public financesadmin

The National Statistics Institute (INE) announced that Portugal ended 2024 with a budget surplus of 0.7% of GDP, above the 0.4% forecast by the Government. This result reflects higher revenues and reasonable containment of public spending, reinforcing the resilience of public finances in a context of economic adjustment.

The surplus, although positive, contrasts with more conservative forecasts from bodies such as the Bank of Portugal, which are already warning of potential deficits in 2025.

This development highlights the importance of rigorous fiscal management and opens space for future decisions on public investments and tax burden reduction.

Minister of Finance Predicts Economic Growth Above 3% in the Medium Term

23/01/2025NewsEconomic growth, fiscal simplification, Gross Domestic Product, investment, Joaquim Miranda Sarmento, labor market, Minister of Finance, Portugal, reduction of IRC, structural reformsadmin

Joaquim Miranda Sarmento, the Minister of Finance, expressed optimism regarding Portugal’s economic future, forecasting sustained economic growth with a rate exceeding 3% in the medium term. These positive expectations reflect the Government’s confidence in the structural reforms being implemented and the country’s ability to attract investment and enhance its economic competitiveness.

According to the Minister, the Government’s planned reforms include key measures such as the progressive reduction of the Corporate Income Tax (IRC), which will make Portugal more attractive to both domestic and foreign companies. The reduction in the corporate tax burden is seen as a strategy to encourage the creation of new businesses, boost employment levels, and promote investment in strategic sectors.

Additionally, fiscal simplification is another crucial priority. The Government aims to reduce bureaucracy associated with the tax system, making it easier for companies and individuals to meet their tax obligations. This simplification will allow economic agents to focus more on growth and innovation, directly contributing to the potential increase in the country’s Gross Domestic Product (GDP).

Another important pillar of the reforms is the restructuring of the labor market, which aims to increase flexibility and efficiency in the labor market in Portugal. The Government intends to promote worker qualification, facilitate the transition to new employment areas, and reduce barriers to hiring, thereby creating a more dynamic and favorable environment for economic growth.

In summary, the Minister of Finance emphasized that these structural reforms are essential to consolidating Portugal’s economic growth. The goal of achieving economic growth above 3% in the medium term demonstrates the Government’s ambition to ensure sustainable development, improving citizens’ quality of life and reinforcing the country’s position in the global economy.

Portuguese Government Reinforces Tax Benefits for Young People Up to 35 Years

22/01/2025Newsfiscal policy, IRS exemption, labor market, Portugal, State Budget 2025, talent retention, tax benefits, young incomes, young workers, youth emigrationadmin

As part of the State Budget for 2025, the Portuguese government introduced a proposal that offers significant tax benefits aimed at young people up to 35 years old. This set of measures, reflecting a strategy to encourage the retention of young talent in Portugal, seeks to combat emigration and create better conditions for the settlement of skilled labor in the country.

According to the proposal, young people entering the job market for the first time, with annual incomes below 28,000 euros, will be fully exempt from paying the Personal Income Tax (IRS) during the first year of work. In subsequent years, a reduced tax rate will be applied progressively, offering considerable fiscal relief and greater savings capacity in the initial stages of their careers.

The government emphasizes that this measure aims to alleviate the tax burden on young workers and provide them with greater financial security during a phase of life where they face challenges such as housing demands, career beginnings, and the possibility of starting a family. The reduction in tax burdens will thus allow for greater flexibility in personal investments and contribute to improving the purchasing power of this segment of the population.

Furthermore, this fiscal policy is part of a broader plan to retain talent in Portugal and mitigate the negative effects of the emigration of young, qualified individuals to other countries—a phenomenon that has affected the labor market and economic growth in the country over the past decades. By creating a more attractive fiscal environment, the government hopes not only to retain skilled workers but also to attract young Portuguese emigrants who wish to return.

In summary, the tax benefits proposed in the State Budget for 2025 are a strategic attempt to create more favorable conditions for young people in Portugal, promoting a more welcoming economic environment and ensuring that the new generation has opportunities to thrive in the country.

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