Will Portugal’s 2027 budget save you money?

Portugal’s 2027 budget has cleared its first vote in parliament. It’s Thursday, 29 October. Twenty-five degrees. Air quality: 35 to 62 (Good to Moderate). Here’s what you need to know.

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THE 2027 BUDGET CLEARS ITS FIRST VOTE. HERE’S WHAT’S IN IT FOR YOU

The government’s 2027 budget passed its first vote in parliament on Wednesday, after more than ten hours of debate. Only the two governing parties, the Social Democrats and the CDS-People’s Party, voted in favour. The Socialists abstained, along with two small parties, PAN and JPP, while Chega, the Liberal Initiative, Livre, the Communists and the Left Bloc voted against. It’s the third year running that the minority government’s budget has got through on Socialist abstention.

Socialist leader José Luís Carneiro backed abstention before the budget was even published, saying the government had given ground on social security, investment funding, the constitutional revision and repairs after last winter’s storms. Chega voted against, with its leader André Ventura saying the budget does too little on food prices, fuel prices and housing.

Nothing is final yet. Line-by-line debate starts today, parties have until 6 November to propose changes, and the final vote is on 24 November. But as it stands, the minimum wage would go up to €970 and public sector staff would get a pay rise of €60.52 or 2.3%, depending on salary. Income tax bands would be adjusted to cut tax again, there would be no new tax rises for a third year, and anyone on the minimum wage would still pay no income tax.

Under-35s buying their first home to live in would still pay no IMT, the property transfer tax, and no stamp duty. Renters would be able to claim back more, with the rent deduction rising to as much as €1,000, and landlords who keep rents moderate would be taxed at just 10%.

There’s also help with electric cars. The environment minister, Maria da Graça Carvalho, announced subsidies of up to 80% for around 20,000 vehicles for low-income households, plus a separate €50 million scheme open to everyone, with rules similar to past rounds. If you’re interested, be quick when it opens. A €10 million scheme in June was used up within hours.

The finance minister, Joaquim Miranda Sarmento, conceded that housing and living costs are hurting, but insisted people are better paid and more are in work than when the government took office in April 2024. The government expects unemployment to edge down from 5.8% to 5.7%.

Bottom line: The budget has passed its first test, and the measures most likely to reach your pocket are the tax cuts, the bigger rent deduction and the electric car subsidies, but none is guaranteed until the final vote on 24 November.

⚡ QUICK HITS

A collision between two high-speed trains in Spain has killed at least 68 people. A Renfe train ran into a stationary Iryo train near Urda, in Toledo province, on Wednesday morning. Spain’s transport minister blamed what he called an “inexplicable” order from rail control, which cleared the Renfe train to carry on past a red signal, and said the drivers were not at fault. Of the roughly 80 injured, 15 are in a very serious condition. It’s Spain’s second deadly high-speed crash this year and the worst rail disaster in Europe in 13 years. Portugal has offered help through CP, the national rail company, the rail network operator Infraestruturas de Portugal, and its rail accident investigators. Services between Madrid and Andalusia are suspended, so check before travelling.

Friday’s Metro and CP strikes have both been called off. The Metro unions withdrew their partial strikes after an arbitration tribunal ordered a minimum service of about 25% of trains between 7am and 10am, with 26 of the network’s 56 stations open, conditions they say raised safety concerns. All four Metro lines will run normally from 6:30am. Separately, the union representing CP’s ticket inspectors and ticket office staff confirmed on Wednesday that it had cancelled its 24-hour strike, so trains should run as usual. The Metro dispute over staff shortages, overtime and long shifts isn’t settled, though, and the unions are meeting workers to decide their next move.

Over 400 lawyers have put their names to an open letter condemning the police’s use of force at the housing protests as excessive. It urges officers to disobey orders they judge unlawful, and calls on the interior minister, Luís Neves, to stop the camp clearances. The Portuguese Association of Women Lawyers has also condemned the operations. Meanwhile, Socialist councillors in Lisbon are questioning the €100,000 figure the mayor, Carlos Moedas, and Neves have both cited for cleaning graffiti off the Rossio statue. They point out that cleaning the Padrão dos Descobrimentos, the Monument to the Discoveries, in 2021 cost €2,300, and they want to see the contract. The council says it will release the contract once the bill comes in.

PetDoctors Veterinários - An English-Speaking Vet for Your Dog or Cat

Moving to Portugal with a pet comes with a small, nagging worry: what happens when something's wrong and you can't explain it to the vet? PetDoctors Veterinários, with practices in Lisbon and Corroios, handles exactly that. The team runs consultations in English, so you actually understand your pet's diagnosis, treatment and options rather than nodding along and hoping.

It's a full small-animal practice for dogs and cats, not just a translator with a stethoscope. They cover the everyday essentials, vaccinations, health checks and preventive plans, right through to internal medicine and surgery.

They also run in-house blood work, so lab tests are done at the practice and results come back quickly, which means faster diagnoses and quicker decisions when your pet needs them. On top of that there's a dedicated dermatology clinic, genuinely useful if your dog or cat has been battling persistent itching, allergies, recurring ear infections or hair loss, the kind of thing that drags on when nobody gets to the root of it.

Whether you've just arrived and need to set up a vaccination schedule, or you've been here years and want a vet you can actually talk to, they see both Portuguese and international pet owners across Lisbon, Corroios and the surrounding areas. Their website is now fully in English too, so you can browse services and book easily.

The goal they set themselves is a simple one: to help your pet live a healthier, happier life, and to give you the information and support to make confident decisions about their care.

→ Find them and book an appointment ←

We only partner with businesses we think genuinely help our community. If this is useful to you, or if you know another pet owner who's been putting off finding a vet, every click and every share goes a long way to keeping this newsletter free every morning.

🍽️ SPOT OF THE DAY

CASA INDEPENDENTE (INTENDENTE)

Casa Independente has two months left. It fills a 19th-century palace on Largo do Intendente with antique furniture and flea-market finds, a plant-filled courtyard of mismatched chairs, and an upstairs bar whose balcony over the patio Time Out rates among Lisbon’s best. It’s a bar, restaurant, concert room and gallery in one, with DJs, gigs, exhibitions and book launches.

It opened in 2012, just as Intendente was shaking off its bad reputation. Its building has been sold and the lease has run out, so the founders, Patrícia Craveiro Lopes and Inês Valdez, are closing it at the end of December. They blame the push for hotels and condominiums now reshaping central Lisbon, and they’ve promised a full programme until the doors shut.

Worth knowing before you go: it’s a cultural venue first, so the atmosphere depends on what’s on. Reviews are mixed, so go for the setting and the programme. Weekends get packed, and the rooms can feel small for the crowds. Time Out lists it as open Tuesday to Thursday from 2pm to 11:45pm, Friday from 2pm to 2am and Saturday from noon to 2am, and closed on Sundays and Mondays, but hours shift around events. Intendente metro is next to the square.

→ Find them here ←

Insider tip: look up what’s on before you go and time your visit around a gig or DJ night, or go on a weekday afternoon if you just want a quiet drink in the courtyard.

📅 WHAT’S ON

See you tomorrow morning.

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