Municipality Benefit in 2024 on Personal Income Tax (IRS)

Since 2008, the municipalities of Portugal have offered their residents the possibility to have a tax benefit. Is called floating participation on IRS (participação variável no IRS). This is a part of the inter-municipality financial regime, in Portuguese: Regime Financeiro das Autarquias e Entidades Intermunicipais.

The law established every municipality has the right, every year, to floating participation, which ranges from 0% to 5% of the IRS derived from the taxpayer with a tax residence in the same municipality. This benefit is a way that the local governments manage to attract taxpayers to their territories, and, with that, collect more taxes.

How can you have this tax benefit?

To have this tax benefit, you need to be aware of the legal deadlines. On the municipality part, they need to communicate with the Portuguese Tributary and Customs Authority, in Portuguese Autoridade Tributária e Aduaneira (AT), what rate (from 0% to 5%) from the IRS they want to retain for themselves.

From the taxpayer's part, the legal deadline to complete and deliver the IRS statement is from the 1st of April 2024 until the 30th of June 2024, otherwise, the tax benefit isn’t applicable.

How can you confirm that you take advantage of this tax benefit?

The Portuguese Tributary and Customs Authority (AT) will automatically apply the reduction at the time of tax settlement. To confirm that you have received the benefit, check your tax settlement bill for the line that says, “municipal benefit.”

How to calculate your IRS reduction?

The IRS deduction is not the same for all taxpayers in each municipality since this is a floating tax benefit. To calculate your deduction, you need to know the percentage retained by your municipality and subtract it from the top range, which is 5%. For example, if your municipality chooses to retain 3% of the taxpayer's IRS, the taxpayer will receive a 2% return rate (5% - 3% = 2%).

How to know the retention rate from each municipality?

In the next list, we provide you with the retention rate from each Portuguese municipality:

Continental Portugal:

Abrantes 4,50%

Águeda 0,00%

Aguiar da Beira 0,00%

Alandroal 5,00%

Albergaria-a-Velha 2,75%

Albufeira 0,00%

Alcácer do Sal 4,00%

Alcanena 4,80%

Alcobaça 2,40%

Alcochete 4,00%

Alcoutim 0,00%

Alenquer 4,80%

Alfandega da Fé 5,00%

Alijo 3,00%

Aljezur 0,00%

Aljustrel 5,00%

Almada 3,50%

Almeida 0,00%

Almeirim 5,00%

Almodôvar 4,00%

Alpiarça 5,00%

Alter do Chão 2,50%

Alvaiázere 2,50%

Alvito 4,00%

Amadora 3,80%

Amarante 5,00%

Amares 5,00%

Anadia 3,00%

Ansião 3,00%

Arcos de Valdevez 3,00%

Arganil 0,00%

Armamar 1,00%

Arraiolos 5,00%

Arronches 0,00%

Arruda dos Vinhos 3,80%

Aveiro 5,00%

Azambuja 5,00%

Baião 5,00%

Barcelos 4,75%

Barrancos 5,00%

Barreiro 5,00%

Batalha 5,00%

Beja 5,00%

Belmonte 2,50%

Benavente 2,50%

Bombarral 3,50%

Borba 4,00%

Boticas 0,00%

Braga 3,00%

Bragança 5,00%

Cabeceiras de Basto 2,00%

Cadaval 2,50%

Caldas da Rainha 2,00%

Caminha 5,00%

Campo Maior 5,00%

Cantanhede 5,00%

Carrazeda de Ansiães 0,00%

Carregal do Sal 5,00%

Cartaxo 5,00%

Cascais 5,00%

Castanheira de Pera 0,00%

Castelo Branco 1,50%

Castelo de Paiva 5,00%

Castelo de Vide 2,50%

Castro Daire 3,00%

Castro Marim 3,50%

Castro Verde 4,00%

Celorico da Beira 4,00%

Celorico de Basto 4,00%

Chaves 5,00%

Cinfães 3,00%

Coimbra 5,00%

Condeixa-a-Nova 5,00%

Constância 5,00%

Coruche 3,00 %

Covilhã 5,00%

Crato 5,00%

Cuba 5,00%

Elvas 5,00%

Entroncamento 5,00%

Espinho 4,50%

Esposende 5,00%

Estarreja 3,00%

Estremoz 3,50%

Évora 3,50%

Fafe 3,00%

Faro 5,00%

Felgueiras 4,34%

Ferreira do Alentejo 5,00%

Ferreira do Zêzere 1,00%

Figueira da Foz 3,25%

Figueira de Castelo Rodrigo 0,00%

Figueiró dos Vinhos 3,00%

Fornos de Algodres 5,00%

Freixo de Espada a Cinta 5,00%

Fronteira 0,00%

Fundão 5,00%

Gavião 0,00%

Gois 2,50%

Golegã 5,00%

Gondomar 5,00%

Gouveia 4,00%

Grândola 5,00%

Guarda 4,00%

Guimarães 5,00%

Idanha-a-Nova 2,50%

Ílhavo 4,00%

Lagoa (algarve) 2,00%

Lagos 0,00%

lamego 4,00%

Leiria 5,00%

Lisboa 0,50%

Loulé 0,00%

Loures 4,75%

Lourinhã 3,75%

Lousada 4,00%

Lousã 4,00%

Macedo de Cavaleiros 1,00%

Mafra 4,75%

Maia 5,00%

Mangualde 4,00%

Manteigas 0,00%

Marco de Canaveses 3,00%

Marinha Grande 5,00%

Marvão 2,50%

Matosinhos 5,00%

Mação 4,00%

Mealhada 2,00%

Meda 5,00%

Melgaço 5,00%

Mértola 3,00%

Mesão Frio 3,00%

Miranda do Corvo 4,00%

Miranda do Douro 2,50%

Mirandela 2,00%

Mogadouro 0,00%

Moimenta da Beira 4,50%

Monchique 2,50%

Mondim de Basto 3,50%

Monforte 5,00%

Montalegre 5,00%

Montemor-o-Novo 3,00%

Montemor-o-Velho 4,50%

Montijo 4,00%

Monção 2,00%

Mora 5,00%

Mortágua 0,00%

Mourão 3,00%

Murtosa 4,00%

Murça 2,50%

Nazaré 5,00%

Nelas 4,00%

Nisa 2,50%

Óbidos 1,00%

Odemira 3,50%

Odivelas 5,00%

Oeiras 4,70%

Oleiros 0,00%

Olhão 4,00%

Oliveira de Azeméis 5,00%

Oliveira de Frades 5,00%

Oliveira do Bairro 0,00%

Oliveira do Hospital 5,00%

Ourem 5,00%

Ourique 2,50%

Ovar 2,00%

Palmela 5,00%

Pampilhosa da Serra 0,00%

Paredes 5,00%

Paredes de Coura 3,00%

Paços de Ferreira 5,00%

Pedrógão Grande 1,00%

Penacova 4,00%

Penafiel 5,00%

Penalva do Castelo 4,00%

Penamacor 0,00%

Penedono 0,00%

Penela 5,00%

Peniche 3,00%

Peso da Régua 5,00%

Pinhel 5,00%

Pombal 2,50%

Ponte da Barca 4,00%

Ponte de Lima 0,00%

Ponte de Sor 3,50%

Portalegre 3,50%

Portel 5,00%

Portimão 5,00%

Porto 3,50%

Porto de Mos 2,50%

Povoa de Lanhoso 4,50%

Povoa de Varzim 4,00%

Proença-a-Nova 2,50%

Redondo 3,00%

Reguengos de Monsaraz 5,00%

Resende 0,00%

Ribeira de Pena 5,00%

Rio Maior 4,60%

S. Brás de Alportel 5,00%

S. João da Madeira 4,50%

S. João da Pesqueira 5,00%

S. Pedro do Sul 2,00%

Sabrosa 0,00%

Sabugal 0,00%

Salvaterra de Magos 5,00%

Santa Comba Dão 4,40%

Santa Maria da Feira 5,00%

Santa Marta de Penaguião 0,50%

Santarém 4,50%

Santiago do Cacém 5,00%

Santo Tirso 3,50%

Sardoal 5,00%

Sátão 5,00%

Seia 2,50 %

Seixal 5,00%

Sernancelhe 5,00%

Serpa 5,00%

Sertã 2,50%

Sesimbra 5,00 %

Setúbal 3,50%

Sever do Vouga 2,50%

Sines 3,75%

Sobral de Monte Agraço 5,00%

Soure 5,00%

Sousel 5,00%

Tábua 5,00%

Tabuaço 5,00%

Tarouca 5,00%

Tavira 2,50%

Terras de Bouro 5,00%

Tomar 4,00%

Tondela 2,50%

Torre de Moncorvo 5,00%

Torres Novas 5,00%

Torres Vedras 3,75%

Trancoso 0,00%

Trofa 4,80%

Vagos 2,50%

Vale de Cambra 2,50%

Valença 2,00%

Valongo 5,00%

Valpaços 5,00%

Vendas Novas 5,00%

Viana do Alentejo 2,50%

Vidigueira 5,00%

Vieira do Minho 0,00%

Vila de Rei 2,50%

Vila do Bispo 0,00%

Vila Flor 0,00%

Vila Franca de Xira 4,75%

Vila Nova da Barquinha 4,50%

Vila Nova de Cerveira 3,00%

Vila Nova de Famalicão 4,50%

Vila Nova de Foz Côa 5,00%

Vila Nova de Gaia 2,50%

Vila Nova de Poiares 5,00%

Vila Pouca de Aguiar 5,00%

Vila Real 5,00%

Vila Real de Santo António 5,00 %

Vila Velha de Ródão 5,00%

Vila Viçosa 3,00%

Vimioso 5,00%

Vinhais 0,00%

Viseu 4,00%

Vizela 3,50%

Vouzela 5,00%

Azores Archipelago:

Angra do Heroísmo 5,00%

Calheta 0,00%

Corvo 5,00%

Horta 4,50%

Lagoa 5,00%

Santa Cruz das Flores 0,00%

Santa Cruz da Graciosa 3,00%

Lajes das Flores 2,00%

Lajes do Pico 5,00%

Nordeste 5,00%

Velas 0,00%

Madalena 5,00%

Povoação 2,50%

Vila Praia da Vitória 5,00%

Ribeira Grande 1,75%

Ponta Delgada 3,50%

Vila Franca do Campo 5,00%

Vila do Porto 5,00%

S. Roque do Pico 5,00%

Madeira Archipelago:

Calheta 0,00%

Camara de Lobos 3,50%

Funchal 0,00%

Machico 4,00%

Porto Santo 3,75%

Ponta do Sol 0,00%

S. Vicente 5,00%

Santana 0,00%

Santa Cruz 4,00%

Ribeira Brava 5,00%

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