The State Budget for 2025 was published in Law no. 45-A/2024, of December 31. It is a State Budget with no fundamental changes to the Portuguese tax system, although it does include some relevant changes. These include the extension of the IRS Jovem scheme, the possibility for taxpayers to deduct VAT on bicycles (with or without a motor), the application of a reduced VAT rate on baby food and bullfighting shows, among other measures.
Baker Tilly's tax consultancy team in Portugal has carried out a detailed analysis of the 2025 State Budget. This analysis covers the main tax changes and their impact on both companies and individuals.
Analysis of the 2025 State Budget
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