In the official journal of the Portuguese Republic, the Portuguese Council of Ministers recently published a resolution determining that all public services must guarantee face-to-face service without appointment, and make real-time information available about their capacity and waiting times.

The Government declared that “all public services and public administration entities that provide services to the public,” regardless of whether they are integrated in a Citizen’s Shop (Loja do Cidadão) or not, will now ensure service hours “without the need for prior appointment, on a daily basis.”

Simultaneously, public services will have to make available to the public, both in Portuguese and in English, information about the services, in an “adequate, complete, and updated” way, on their websites and physical locations, as well as the continuous indication, live, of their waiting times.

Telephonic translation service in languages other than Portuguese and English must be disseminated through the Migrant Helpline of the Agency for Integration, Migration, and Asylum (AIMA).

For citizens with deficiencies or incapacities, elderly visitors, pregnant ladies, and people accompanied by young children, there will be tickets allowing priority service.

The resolution also requests that each entity delivers a study, within 180 days, that includes the “survey of the quantity and training adequacy of the human resources of the services for the functions of public service, as well as any necessary improvements in the physical facilities where it is provided;” the “identification of services exclusively provided in person, justifying such need or the susceptibility for their dematerialization;” and the “evaluation of the impacts of the telework regime, by service workers,” for the fulfillment of face-to-face service.

Luís Montenegro’s Government also recommended that the administrative bodies of the autonomous regions and respective local authorities, as well as the local and regional administration entities, adopt these rules, so that they are applied uniformly throughout the country.

More than 45,000 stray animals were removed from the streets in 2023 in Portugal.

According to the official data revealed by the last report published by the Institute for Natural Conservation and Forests, last year, 45,148 stray animals were removed from the streets. However, the Institute warns that the real number of stray animals is much higher, being close to a million.

Note that, out of all the Portuguese municipalities, 15 did not reply to the Institute’s inquiry, and 43 did not provide any data. Independently, the official numbers are what counts.

During the last 5 years, the number of stray animals removed from the streets was as follows:

2019 – 31,966

2020 – 31,339

2021 – 43,603

2022 – 41,994

2023 – 45,148

There have never been so many stray animals rescued as last year. According to the Institute, this is not a recent issue. However, the post-pandemic period has been rough in this sense. Many people adopted animals during the pandemic, not because they really wanted them, but because they could use the company and/or the excuse to go out. As restrictions were lifted and time passed, many animals became more of a burden instead of an actual part of the family that was appreciated and loved unconditionally.

The ongoing crisis and the continuous degradation of the general quality of life for most people has also had a negative impact. Today, having an animal as part of the family is often more expensive than having a person.

However, not all results are negative. The same report shows that, even though there are many more animals on the streets, there are also many more animals being adopted. During the last five years, the numbers were as follows:

2019 – 18,187

2020 – 20,664

2021 – 25,474

2022 – 24,721

2023 – 30,424

The Institute believes that the progressive social awareness related to the number of stray animals and the possibility of adopting instead of buying has impacted these numbers positively. The hard work of municipalities and animal organizations over the years seems to be producing results. However, more effort is required, especially regarding the improvement of the operational capacity of the associations and public kennels.

A recent study revealed that the greater Porto Region has more than 30,000 vacant buildings.

According to the data published by the real estate website and marketplace, Idealista, the municipalities of Porto, Matosinhos, Gaia, and Gondomar, all of which are part of the Porto region, together have around 31,241 buildings that may be vacant, or are declared as such. Note that, in Gaia alone, there are 22,001 buildings in such conditions.

Almost all of the buildings are privately owned, and the owners have to pay a higher municipal property tax (IMI) to the authorities – the aggravated municipal property tax (aggravated IMI).

When it comes to the reasons why the buildings are in such conditions, Idealista identified several different factors. First and foremost, many of the buildings are stalled for judicial reasons connected to the sharing of family inheritances. Others are being held as they are, waiting for an increase in value that justifies their sale. Some have the project licensing delayed due to bureaucratic reasons, and others will never be built because the construction costs have become too high.

On July 4, the Portuguese Government announced a package of 60 measures to help the national economy overcome 20 challenges, known as the “Accelerate the Economy Program” (Programa Acelerar a Economia).

Given the current context of Portugal, here are some of the most critical measures:

1. Gradual Reduction of Corporate Income Tax (IRC) to 15% – To stimulate economic growth and increase the competitiveness of Portuguese companies, the program proposes a gradual reduction of the corporate income tax rate, from the current level to 15%, at 2 percentage points per year. The measure aims to enhance the investment capacity of businesses and improve salary levels and, as a result, foster a more dynamic economic environment. For SMEs and Small MidCap companies, the IRC rate on the first 50,000 euros of taxable income will be reduced gradually to 12.5% over three years.
2. New Talent Attraction Regime (IFICI+) – Recognizing the importance of talent in driving innovation and growth, the IFICI+ program introduces a 20% tax rate on qualified professionals’ income. This measure is designed to attract highly skilled workers to Portugal, addressing the current talent shortage and boosting the country’s innovation capabilities. By broadening the range of professions and companies that are eligible for this incentive, the program aims to create a more attractive environment for talent. Note that this regime is what extends the scope of what is known as the NHR.
3. Reinforcement of Financial Incentives for Small MidCaps – Small MidCap companies play a crucial role in the Portuguese economy. Hence, the program strengthens the financial incentives under the PT2030 initiative, ensuring that companies have access to the necessary support to scale and expand. The measure aims to promote transparency in access to public funds, encouraging investment in innovation and participation in global supply chains.
4. Launch of the ‘State to Pay in 30 Days’ Plan’ – The plan states that public entities shall reduce payment terms to suppliers to no more than 30 days in order to improve liquidity and economic certainty. This initiative will significantly benefit SMEs by ensuring timely payments, thus enhancing their cash flow. Also, the creation of a current account between the Tax Authority and companies, which will eventually expand to the entire central administration, will further streamline financial transactions.
5. Industry 2045 – This measure entails the creation of a 20-year strategic vision and action plan for the sustainable reindustrialization of Portugal. The objectives are to strengthen Portugal’s role in European industrial policy, replace imports, and add high-value services. By focusing on sustainable practices, this measure is expected to modernize the industrial sector and promote long-term economic resilience.
6. Strengthening Tourism Sector Digitalization – Digital transformation is considered essential for maintaining competitiveness in the tourism sector. Hence, this measure promotes the digitalization of tourism companies through projects that enhance asset interconnection, tourist flow management, and innovation accelerators. The rationale is that, by leveraging digital tools, the tourism sector can improve service delivery and customer experience, positioning Portugal as a leading tourist destination.
7. Sustainability, Circular Economy, and Climate Agenda Plan for Tourism – This plan, which will be executed until 2030, is set to reinforce Portugal’s position as a sustainable tourist destination. The plan focuses on promoting circular economy practices and environmental sustainability, with the support of a network of regional tourism observatories, and intends to attract environmentally conscious tourists and investors to ensure the long-term viability of the tourism sector.
8. National Program for Technological Innovation Training – A program that will provide training in partnership with universities and polytechnics in order to boost innovation and the commercialization of new products. The initiative aims to develop skills that are essential for technological innovation, enhancing the country’s capacity to compete on a global scale. Through an adequate investment in human capital, Portugal can foster innovation and drive economic growth.
9. Launch of the Defense Economy Program – Strengthening the defense industry’s technological and industrial base, this is a measure that promotes the participation of Portuguese companies in European and NATO procurement programs. The objective is to improve the country’s defense capabilities and create new economic opportunities by encouraging collaboration in research.
10. Creation of the ‘PME Líder ESG’ Award – This award is introduced to encourage the adoption of environmental, social, and governance (ESG) practices. The recognition is supposed to incentivize companies to integrate sustainable and responsible business practices, thereby enhancing their competitiveness and contributing to a more sustainable economy.
11. Integration and Training Program for Migrants and Refugees in Tourism – Recognizing the potential of migrants and refugees, this program aims to improve their integration through highly specific training and job placement within the sector. The initiative seeks to address labor shortages and enhance the diversity and inclusivity of the workforce by leveraging the skills and the talents of these groups.
12. Complete the National Maritime Spatial Planning Plan – The approval of the Maritime Spatial Planning Plan for the Azores will complete the plan for the Portuguese maritime space, which will support economic activities and marine environment protection. The goal is to promote the sustainable use of marine resources, contributing to the blue economy and to environmental conservation.
13. Promote Innovation Supports in Blue Biotechnology – This measure provides financial support to blue biotechnology SMEs, for the innovation of consultancy services, in order to enhance their market presence through technological assistance and intellectual property management, and boost the blue economy whilst promoting sustainable innovation in marine resources.

The “Programa Acelerar a Economia” presents a strategic framework designed to improve Portugal’s economy by addressing key challenges and leveraging opportunities for growth and resilience. Focusing on measures that enhance competitiveness, attract talent, promote innovation, and ensure sustainability, among others, the package lays a strong foundation for a more prosperous economic future.

Although we’re not at the execution stage yet, its existence and substance reaffirm the Government’s commitment to a conscious and sustainable economic development.

The Portuguese Government announced a new Non-Habitual Residents (NHR) regime yesterday. The ordinance is yet to go into effect while the implementation and clarification details are worked out.

Here is what we know so far.

According to the Financial Times, the Portuguese Minister of Finance, Joaquim Miranda Sarmento, intends to recover the measure that has been terminated by the former Government (the original NHR).

Yesterday, the Portuguese Council of Ministers approved a reintegration, and the Minister of Finance presented its general basic principle – to tax only 20% of the income obtained in Portugal by non-resident scientists and researchers, either foreigners or Portuguese immigrants, who have not lived in Portugal for at least 5 years.

The previous NHR regime allowed for a reduction of the personal income tax (IRS). It stipulated that Portuguese source income, from dependent work and self employment, earned from high-value added activities of a scientific, artistic, or technical nature, by non-habitual residents, was taxed at a special rate of 20%, if they did not opt for aggregation, regardless of the amount earned. Pensioners, on the other hand, paid 10% IRS, and until 2020 they were exempt from doing so. The regime was materialized in the State Budget for 2024, where the former Government created a rule in the Tax Benefits Statute, as it can be seen in the Portuguese IRS Code.

The new regime will be regulated through an ordinance, which, unlike laws and law-decrees, is an administrative act of power exclusive to the Government (according to the Portuguese Constitution of the Republic). It is important to consider that such an act is usually used to regulate details on a specific matter.

In accordance with the words of the Minister of Finance, the new regime will cover, exclusively, the A and B income categories, which will have a flat rate of 20%. This means (A) dependent work, and (B) any business and professional income. In terms of personal scope, it will apply to non-residents “who take up residence in Portugal and who have not resided in Portugal for the last 5 years,” and did not benefit from the previous regime.

The new Non-Habitual Residents regime designed to attract more talented individuals will extend to more professionals than the previous NHR. According to the Minister, the new regime will include scientists, researchers, and other qualified professionals. The goal is to “attract qualified talent to the Portuguese economy” by providing “a tax incentive for scientific research, innovation, and human capital, that covers a wide range of qualified professions and companies”.

Note that pensioners are excluded from this new NHR regime.