- Portugal’s state budget law for 2025 was published on 31 December 2024 and took effect on 1 January 2025
- The law includes a reduction in the standard corporate income tax rate from 21% to 20%
- The budget law also includes changes to VAT rates and exemptions
- Reduced VAT rate now applies to infant food, medical food, diet replacements, rescue equipment, and bullfighting tickets
- VAT exemption extended for agricultural goods like compost, fertilizers, and animal feed until 31 December 2025
- VAT deductibility clarified for businesses using bicycles for taxable activities
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
