The 2025 Portugal State Budget proposal has been presented and approved, with the abstention of just one of the parties supporting the government. The key changes will impact household budgets. However, the document includes a few housing-related measures, meaning no significant changes are expected in this sector. To find out what to expect in the coming year, read this article and discover the changes introduced by the 2025 State Budget.
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- End of Exemption from Commissions on Mortgage Repayments
One of the proposed changes is the end of the exemption from commissions on mortgage repayments. Initially scheduled to end in January 2025, this exemption has been extended until the end of the same year following the approval of a proposal from the Socialist Party on December 18.
Do so to repay your mortgage under more favourable conditions by December 2025. It is important to note that this exemption applies exclusively to contracts with a variable interest rate.
Starting from January 1, 2026, repayments will incur a 0.5% commission on the repaid amount.
- Reduction of VAT on Electricity: from 23% to 6% on the First kWh
In 2025, the VAT applied to electricity will be reduced from 23% to 6% on the first 200 kWh consumed in most Portuguese households. For larger families, this benefit will be extended to 300 kWh. Large families are defined as those with more than two dependent children.
Despite this VAT reduction, electricity prices in the regulated market will increase by 2.1%, which could result in an additional charge of between €0.64 and €1.60 on the monthly bill.
The ERSE (Energy Services Regulatory Authority) has presented the new regulated market tariffs, including this increase for customers on Low Voltage Normal (LVN), covering both residential and microenterprise sectors.
- Changes to the Porta 65 Support Programme
The Porta 65 Programme will experience major changes in 2025 to simplify access to rental housing. These changes are designed to support around 40,000 young people, aged between 18 and 35, through an increased budget.
One of the main updates is removing the maximum rent limit for eligibility to the programme, a measure that previously excluded many applicants. In addition, it will now be possible to apply Porta 65 before securing a property, streamlining the process and enhancing the effectiveness of the support.
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- Toll Payment Exemption on Former SCUT Roads
Although not directly linked to housing, this measure will impact residents and visitors to the Algarve. From 2025, one of the region’s main routes will no longer incur charges, offering significant financial relief.
The exemption applies to former SCUT roads, including the following motorways: A4, A13, A13-1, A22, A23, A24, A25, and A28. This change will benefit residents and those who regularly use these routes.
The 2025 Portugal State Budget reflects the Government’s efforts to support families but does not introduce significant measures for the housing sector. Despite some changes related to the cost of living and access to rental accommodation, housing remains a challenging area for the Portuguese Government.
