Portugal's Draft Budget Law for 2025 Includes Reduced Corporate Tax Rates and Other Changes

Portugal's draft Budget Law for 2025 (Draft Law No. 26/XVI/1) was submitted to parliament on 10 October 2024. Some of the main measures include:

• A reduction in the standard corporate tax rate from 21% to 20%;
• A reduction to the reduced corporate tax rate for SMEs on the first EUR 50,000 of taxable income from 17% to 16%;
• An increased deduction of 120% for health insurance expenses incurred for the benefit of employees, retirees, or their families
• The revision of the personal income tax brac…