State Budget 2026 – What Changes for Businesses?
Publication Date: 23/10/2025
The State Budget Proposal is always highly anticipated by the business community. Every year, the fiscal and labor measures it contains shape company management, influence employee income, and determine business competitiveness.
In 2026, several significant changes stand out for SMEs and the business sector in general. We’ve summarized the key points clearly and practically below.
💼 Changes to Corporate Income Tax (IRC)
The general corporate income tax rate will be reduced from 20% to 19% in 2026, with further reductions expected to 18% in 2027 and 17% in 2028;
SMEs and Small Mid Caps will benefit from a reduced rate of 15% on the first €50,000 of taxable income.
📈 Salary Increases
The tax benefit for companies that raise salaries by at least 4.6% will remain in place, encouraging employee appreciation and alignment with the national social concertation agreement;
Productivity bonuses, profit-sharing, and gratuities will remain exempt from personal income tax (IRS) up to 6% of the annual base salary, provided that the minimum 4.6% salary increase is applied.
📊 Accounting Obligations
The submission of the SAF-T accounting file has been postponed once again. Instead of applying from the 2026 fiscal year, it will only be required for 2027 (to be submitted in 2028). The Government intends to review the framework before it takes effect;
PDF invoices will continue to be accepted until the end of 2026;
The inventory valuation requirement remains suspended — only the obligation to report stock quantities will apply.
🚀 Support for Entrepreneurship and Innovation
A total of €2.337 billion has been allocated to promote the creation and growth of innovative companies.
Measures include:
Consolidation of Startup Portugal as the national entrepreneurship platform;
Support for the adoption of artificial intelligence in companies;
Development of international acceleration programs.
💶 National Minimum Wage (SMN)
The minimum wage will increase to 920€ in 2026, a rise of 5.75% compared to the current amount, surpassing inflation;
The defined goal is to reach 1,100€ by 2028, reinforcing the value of work and income growth.
📊 Economic Outlook for 2026
The Portuguese economy is expected to accelerate growth next year, driven by higher domestic demand and private consumption.
Projected GDP growth: 2.3% in 2026 (after 2% in 2025);
This performance is expected to exceed the euro area average, where the European Central Bank (ECB) forecasts only 1.2% growth.