“We are going to propose that in the budget the return of 5% of IRS to taxpayers who pay taxes in Lisbon be deliberated, this means that we take another step in what was our electoral guarantee”, said Filipe Anacoreta Correia (CDS-PP), at the presentation of Lisbon's municipal budget proposal for 2025.

At issue is the rate of participation in the Personal Income Tax (IRS), in which, since 2008, municipalities have been entitled, each year, to a variable participation, of between 0% and 5%, in taxpayers' IRS with tax domicile in their territories, which is established by the municipal executive.

The return of taxes to Lisbon residents was an electoral commitment of the “Novos Tempos” (PSD/CDS-PP/MPT/PPM/Aliança coalition in the 2021 municipal elections), which has been implemented gradually since 2022, when the executive increased the return of IRS from 2.5% to 3%, rising to 3.5% in 2023 and 4.5% in 2024.

In Lisbon's municipal budget proposal for 2025, the PSD/CDS-PP leadership wants to return the maximum IRS total to Lisbon's citizens, 5%, a measure that will have an impact in 2026, waiving the municipality 86 million euros (ME ), according to information presented by the deputy mayor and responsible for the Finance Secretariat.

In 2025, the year in which the 4.5% IRS refund applies, the measure will have an impact of 77 ME on the municipality's accounts, indicated Anacoreta Correia, revealing that in the 2021-2024 mandate this commitment to return taxes to Lisbon residents represents a total of 267 MEs.

“It is a measure that we also attach great importance to, a contribution from the municipality of Lisbon, a commitment to lowering taxes. All of this was done with solid accounts, with a positive current balance”, indicated the person responsible for Finance, highlighting that this measure does not put the response in several areas such as housing and mobility at risk.

The vice-mayor also said that the return of taxes should also act as an incentive for residents to settle in the city: “This is our objective in a set of measures that we have, not only here, but in the housing area, with income support, as well as in the area of ​​mobility, with support for [public transport] passes. We seek to provide residents with a wide range of benefits.”