Portugal unveils 2027 budget with tax, housing and tuition changes affecting families

Portugal’s government presented its 2027 State Budget on Friday, Euronews reports, outlining a suite of measures that will modify personal income‑tax brackets, reduce certain housing subsidies and raise university tuition fees. The finance ministry also signalled modest revisions to pension indexation and the minimum wage, aiming to balance fiscal consolidation with social protection. These provisions are set to take effect from 1 January 2027 and will be debated in the Assembly of the Republic later this month. The budget arrives amid ongoing EU fiscal monitoring under the Stability and Growth Pact, where member states are urged to keep deficits below 3 % of GDP while supporting convergence objectives. Portugal’s recalibration of tax reliefs aligns with broader European trends of tightening revenue streams after pandemic‑induced deficits, and its adjustments to housing benefits echo the EU’s focus on affordable housing within the European Social Charter. Moreover, the increased tuition fees intersect with the EU’s Mobility Programme, raising questions about cross‑border student flows and the attractiveness of Portuguese higher education. For Portuguese citizens, the combined effect of higher taxes, reduced housing aid and steeper tuition costs will compress disposable income, especially for low‑ and middle‑income families. Businesses may face altered payroll costs and a potential shift in consumer spending. The budget still requires parliamentary approval, with a vote scheduled for early December; subsequent EU reporting will assess compliance with fiscal rules, and the government has pledged a review of the measures in the 2028 budget cycle.

Source: Euronews. Read the original report ↗