State Budget 25: The main measures and how they affect the financial future

O State Budget for 2025 (OE25) has been approved and is already generating expectations about the impact of its measures on the daily lives of citizens and companies. This budget, the first of Luís Montenegro's government, brings significant changes in areas such as pensions, taxes, fiscal incentives and social support. So get to know the highlights that will mark the coming year and how you can prepare to make the most of the new rules. Read more here.

Increased pensions and benefits for pensioners

Pensioners are major beneficiaries of the OE25. As a result, from January, pensions of up to 1,500 euros will receive an extraordinary increase of up to 3.9%. In addition, there is the possibility of an extra supplement of between 100 and 200 euros, depending on budget implementation. These measures therefore represent a double benefit, guaranteeing greater purchasing power for pensioners.

IRS Reductions and Extended Tax Benefits

The personal income tax (IRS) is once again going down, with an update of the brackets by 4.6%, which will ease the tax burden for workers and pensioners. After much discussion, the Young IRS has been extended to 10 years and the graduation requirement has been dropped, benefiting young people up to the age of 35 starting their working lives. In short, these changes not only promote tax relief, but also encourage the retention of talent in the country.

Changes to Corporate Income Tax

Companies will also enjoy important advantages. In particular, the general corporate income tax rate will drop to 20%, while SMEs will enjoy a reduction to 16% on the first 50,000 euros of taxable income. In addition, autonomous taxation on vehicles is reduced, making it more attractive for entrepreneurs who need to renew their fleets.

Other important highlights of SB25

Reduced VAT on baby food and bullfighting tickets stands out among the novelties. On the other hand, measures such as incentives for companies to set up crèche rooms or the promotion of student residences promise to strengthen social support.

Prepare for 2025 with Serro & Andrade

The changes brought about by OE25 affect various dimensions of personal and business life. In Serro & AndradeWe offer specialised advice to help you interpret these changes and implement the most advantageous strategies.

📞 Talk to us today to transform the challenges of SB25 into opportunities for growth and savings!