Source: Adobe Stock Author: Redaction Euribor rises again this Wednesday Euribor recorded an increase this Wednesday across the three main terms used in mortgage loans. The three-month rate rose to 2.240%, while the six-month Euribor increased to 2.556% and the 12-month rate climbed to 2.867%. Despite the increase, the three-month Euribor remains below the six and 12-month rates. The evolution of Euribor rates continues to be closely monitored by households with variable-rate mortgage loans. Six-month Euribor remains the most used in mortgages The six-month Euribor continues to be the most widely used in Portugal for variable-rate mortgage contracts. Data from the Bank of Portugal indicate that this term represented more than 39% of the total stock of loans for permanent owner-occupied housing in February. Meanwhile, the 12-month Euribor accounted for around 31.7% of contracts, while the three-month rate represented almost 25% of the variable-rate mortgage stock. In Wednesday’s movements, the six-month Euribor rose by 0.033 points, while the 12-month rate increased by 0.030 points. The three-month Euribor advanced by 0.022 points compared with the previous session. Monthly averages also recorded increases Monthly Euribor averages in April also posted increases across the three terms, although less intense than those seen in March. The three-month Euribor rose to 2.175%, while the six-month rate increased to 2.454%. For the 12-month term, Euribor recorded the sharpest rise, reaching a monthly average of 2.747%. The evolution of rates continues to reflect investors’ expectations regarding European monetary policy. Market focused on ECB decisions The European Central Bank recently kept interest rates unchanged, marking the seventh consecutive monetary policy meeting without changes. Even so, markets continue to anticipate possible changes at the ECB’s next meeting scheduled for June. The evolution of Euribor remains directly linked to expectations surrounding ECB decisions and inflation trends in the Eurozone. Euribor rates are based on the average rates at which a group of European banks lend money to one another on the interbank market. With fresh fluctuations in rates, the impact on mortgage repayments remains one of the main concerns for many Portuguese families.
Source: Adobe Stock Author: Redaction Electricity prices falling in Portugal Electricity prices in Portugal recorded a 7% decrease in the second half of 2025 compared to the same period in 2024, according to data from the Energy Services Regulatory Authority (ERSE). This evolution keeps electricity prices in the country below the European Union and Eurozone averages, and also lower than those in Spain. In the household segment, electricity prices in Portugal remain more competitive, although with relevant differences between countries. According to ERSE, electricity prices for households in Portugal remain below the European average, reinforcing the country’s position in the context of electricity prices in the EU. European comparison of electricity prices In the second half of 2025, electricity prices in the Eurozone and European Union were on average 20% and 16% higher than in Portugal. Electricity prices in Portugal stood at around 26 cents per kWh, while in the EU and Eurozone they ranged between 30 and 31 cents. Compared with Spain, electricity prices in Portugal were also lower, around 10% less. However, electricity prices across Europe vary significantly, with countries such as Hungary, Bulgaria and Croatia among the cheapest, and Germany, Belgium and Austria among the most expensive. According to ERSE and Eurostat data, electricity prices in Portugal have remained stable over recent years, always below the European average. Taxes continue to weigh on bills Despite the drop in electricity prices, taxes continue to have a significant impact. In Portugal, taxes account for 34% of household electricity bills, above the EU average (29%) and the Eurozone (28%). Electricity prices in Portugal also include costs of general economic interest, which contribute to this tax burden. In the European ranking, only Denmark, Poland and Sweden have a higher tax burden on electricity bills. This weight of taxes in electricity prices in Portugal remains one of the most relevant factors in the final bill structure. Businesses and energy market evolution In the business segment, electricity prices in Portugal also remain competitive, around 33% below the Eurozone average. However, taxes represent 22% of companies’ energy bills, above the European average. According to ERSE, electricity prices for businesses in Portugal have remained lower than in Spain and the EU average in recent years, despite some fluctuations. The evolution of electricity prices also reflects changes in grid access tariffs, which helped contain sharper increases. Overall, electricity prices in Portugal remain competitive in the European context, although the tax burden remains a key factor in the final amount paid by consumers.
Source: Adobe Stock Author: Redaction External market boosts tourism Tourism activity in Portugal recorded growth in March, according to INE, with the tourist accommodation sector reaching 2.3 million guests and 5.6 million overnight stays. Tourism activity was mainly driven by the external market, with overnight stays by non-residents increasing by 2.9%, while those by residents recorded a decrease. This dynamic reinforces the weight of international tourism activity in the sector’s performance. Regions and cities with higher tourism activity Tourism activity showed different trends across regions. The North and Alentejo stood out with the largest increases in overnight stays, while the Centre and Oeste and Vale do Tejo recorded declines. Greater Lisbon, the Algarve and the North accounted for the largest share of tourism activity. At municipal level, Lisbon led tourism activity with the highest number of overnight stays, followed by Porto, which also recorded significant growth supported by both residents and non-residents. Stays and markets strengthen tourism activity The average stay in tourism activity increased to 2.42 nights, with Madeira and the Algarve standing out for the longest stays. The Alentejo recorded the strongest growth in this indicator. In terms of source markets, tourism activity was led by the British market, followed by the German and North American markets. Among the main markets, Ireland and Spain recorded the highest increases, while Brazil showed a decline. The evolution of tourism activity may have been influenced by seasonal calendar effects.
Source: Adobe Stock Author: Redaction New agency brings together science and innovation The Ministers of Education and Economy underlined the importance of a true “virtuous circle” between research and innovation, highlighting the creation of the new Agency for Research and Innovation (AI2). This entity results from the merger of the Foundation for Science and Technology (FCT) and the National Innovation Agency (ANI), taking on a central role in the link between science and innovation in Portugal. The joint governance of AI2 strengthens coordination between research, innovation and the economy, in a more integrated and strategic model. Government focuses on the virtuous circle According to the Minister of Education, Science and Innovation, the link between research and innovation is essential to ensure sustainable economic growth. The creation of AI2 aims precisely to consolidate this virtuous circle between science and innovation, bringing scientific production closer to the challenges of the real economy. The Minister of Economy and Territorial Cohesion also highlighted that this structural change brings science and innovation closer to economic development, strengthening the impact of research and innovation on the country’s productivity and competitiveness. Science, innovation and economy connected The Government’s strategy aims to strengthen the link between research and innovation and society, ensuring that scientific knowledge generates economic impact. The goal is to reach 3% of GDP in research and development by 2030, reinforcing investment in science and innovation as a national priority. The new AI2 agency aims to accelerate this articulation between research and innovation, promoting greater efficiency in knowledge transfer to the economy. AI2 and new innovation governance AI2 will be chaired by João Barros and includes a team dedicated to research and innovation, with vice-presidencies focused on both areas. The creation of the agency marks a structural reform in the way the State manages research and innovation, reinforcing the strategic role of science and innovation in economic development. The Government also underlines the legacy of the FCT and ANI, reinforcing the historical importance of research and innovation in Portugal.
Source: Adobe Stock Author: Redaction PRR housing execution delayed PRR housing execution remains well below expectations. Of the 10,199 affordable homes financed by the PRR, only 200 have been delivered to families. There are still 404 completed homes not yet handed over and 2,194 under construction. This delay in PRR housing is considered critical by the National Monitoring Commission of the PRR, which highlights the weak execution capacity of PRR housing targets. Changes to PRR housing targets PRR housing targets have been changed several times throughout the programme. Initially, 6,800 homes were planned, then 3,500, and later 10,199 housing units. The methodological change shifted PRR housing from homes delivered to families to homes built or renovated . This change directly affects the evaluation of PRR housing, moving away from the real impact on housing access. Constraints and delays in PRR housing PRR housing faces several structural constraints. These include failed tenders due to low construction costs, administrative delays, and difficulties in transferring public property. Delays in PRR housing are also linked to municipal treasury issues and payment delays. The concentration of works in the final months of the PRR further increases the risk in PRR housing execution. Risks and future of PRR housing Despite delays in PRR housing, the Government ensures alternative financing through the European Investment Bank. However, the Commission warns that PRR housing remains below what is needed to meet targets. PRR housing now depends on stronger technical monitoring and faster execution. Even so, the risk in PRR housing remains high due to the complexity of the programme and pressure from the European timetable.
Source: Adobe Stock Author: Redaction Sectors lead immigration via “fast-track” channel Construction and agriculture stand out as the main sectors using the “fast-track immigration” mechanism, created to speed up the hiring of foreign workers. Since its entry into force, more than 6,000 visa applications have been submitted under the fast-track immigration scheme. These two sectors account for the majority of approvals, highlighting the importance of fast-track immigration in addressing labour shortages in Portugal. Agriculture and construction dominate approvals Data shows that agriculture represents around 66% of fast-track immigration approvals, while construction accounts for approximately 23%. This dominance of fast-track immigration in these sectors reflects strong reliance on foreign workers, in a context of national labour shortages. Fast-track immigration has been essential to ensure the continuity of projects and harvests in these areas. Growth of other sectors in immigration Despite the leadership of construction and agriculture in fast-track immigration, sectors such as retail, services and industry have been gaining ground. The growing adoption of fast-track immigration shows that more companies are using this mechanism, either directly or through business associations. This also allows small and medium-sized enterprises to benefit from fast-track immigration to meet recruitment needs. Companies and impact of regulated immigration A total of 142 companies have already benefited from the protocol linked to fast-track immigration, which aims to provide a faster and regulated labour migration process. This fast-track immigration model seeks to address labour shortages in strategic economic sectors. Fast-track immigration is seen as a solution to balance labour market needs and attract foreign workers in a structured way.
Source: Adobe Stock Author: Redaction Bank valuation pressures mortgage credit Bank valuation continues to rise in Portugal, setting the median value at 2,151 euros per square metre. This increase has a direct impact on mortgage credit, as the amount financed depends on the value assigned by banks to properties. The rise in m2 translates into higher housing costs, forcing many families to increase equity or take on higher levels of borrowing. On an annual basis, growth remains significant, reflecting a market still pressured by demand. Despite this scenario, the number of bank valuations fell compared to the same period last year, which may indicate a slowdown in mortgage credit demand in a context of tight financing conditions. Apartments lead economic impact Apartments remain the main driver of bank valuation, with the median value reaching 2,511 euros per square metre. This segment accounts for the largest share of mortgage credit, directly influencing market dynamics. Rising apartment prices have an immediate effect on purchasing power, especially in urban areas where values are highest. Greater Lisbon and the Algarve remain the most expensive markets, increasing difficulties in accessing housing. Strong demand for T1, T2 and T3 typologies reinforces price pressure, contributing to higher financial strain on households. Houses and moderate financing growth In the housing segment, bank valuation also rises, but at a more moderate pace. The median value stands at 1,542 euros per square metre, maintaining a relevant upward trend. This growth, although lower than that of apartments, continues to influence mortgage credit, especially in peripheral and inland areas where houses have greater weight. The evolution across property types confirms that price increases are widespread, although with different intensities across segments. Market remains under pressure despite lower activity Bank valuation shows a market that continues to grow in value, even with signs of lower annual activity. The rise in m2, combined with a reduction in the number of valuations, suggests an adjustment between supply, demand and financing conditions. Regional differences remain, with more affordable areas offering alternatives, while major urban centres continue to concentrate the highest values. From an economic perspective, the evolution of bank valuation continues to challenge access to mortgage credit, directly impacting purchasing power and overall real estate market dynamics.
Source: Adobe Stock Author: Redaction Mandatory insurance for homes and businesses Home insurance becomes mandatory within the scope of the creation of a natural and seismic catastrophe fund. This measure also includes business insurance, covering physical facilities and productive structures, strengthening protection against extreme risks. The new model of home insurance and business insurance includes a solidarity mechanism that ensures universal access, with financial support for the most disadvantaged to pay the premium. The system logic is based on risk sharing and financing sustainability. Mandatory home insurance and mandatory business insurance are presented as a structural reform of the catastrophe protection system, aligned with the proposal of the sector regulator. Catastrophe fund and new risk model The catastrophe fund will be financed in response to the need to cover seismic and natural risks. This catastrophe fund is associated with the mandatory nature of home insurance and business insurance, ensuring a stable financial base. The objective of the catastrophe fund is to strengthen the capacity to respond to extreme events, reducing state dependency and promoting greater shared responsibility through home insurance and business insurance. The insurance sector plays a central role in the functioning of the catastrophe fund, actively participating in defining the home insurance and business insurance model. Impact on the insurance sector and the economy Mandatory home insurance and mandatory business insurance represent a significant change in the insurance market. The creation of the catastrophe fund reinforces the importance of home insurance as a financial protection tool for families. For businesses, business insurance becomes an essential component of risk management, especially in infrastructure exposed to natural phenomena. Home insurance and business insurance become part of a structured prevention logic. The new framework for home insurance and business insurance aims to balance social protection and financial sustainability, ensuring that the catastrophe fund operates continuously and accessibly.
Source: Adobe Stock Author: Redaction Fisco restricts rent support in CIT The tax authority has limited the scope of rent support for companies, clarifying that the CIT tax benefit cannot reduce tax below 90% of the amount that would be due without this mechanism. Although the regime allows a reduction linked to rent support, the effective impact is constrained by this rule. The interpretation of the Tax Authority (AT) establishes that rent support constitutes a tax benefit, subject to the general rules of the CIT Code. Thus, even with the partial exclusion of income, rent support cannot exceed the limits defined for tax reduction. This framework confirms that rent support is of an exceptional and temporary nature, applied only to certain rental income, but always within the structural rules of the tax system. Rent support rules and limitations Rent support provides that rental income is considered at only 87% of its value, allowing a direct reduction of taxable income. However, the tax authority considers rent support to be a tax benefit and therefore subject to Article 92 of the CIT Code. In practice, this means rent support cannot result in final tax falling below 90% of the amount that would be assessed without tax benefits. This “cap” limits the effect of rent support on CIT calculation. The Tax Authority also stresses that rent support depends on compliance with specific conditions, such as contracts prior to 2021 and rent update rules, reinforcing the selective nature of the regime. Impact of rent support on companies Rent support continues to allow a reduction in the taxable base, but its impact is partially neutralised by the 90% CIT limitation. Thus, rent support works as a 13% deduction on rental income, but without eliminating the required minimum taxation. The tax authority reinforces that rent support does not override the general rules of the CIT Code, maintaining the need to ensure a minimum level of tax. As a result, rent support loses part of its initial effectiveness, although it remains a relevant tax relief for eligible companies. The position now published confirms a restrictive interpretation of rent support, aligned with the strict application of limits on tax benefits within the Portuguese tax system.
Source: Adobe Stock Author: Redaction Euribor rises across the main maturities The Euribor rate rose this Monday at three, six and 12 months, compared to last Friday, in a shorter week during which the European Central Bank (ECB) monetary policy meeting takes place in Frankfurt. With these changes, the three-month Euribor rose to 2.170%, remaining below the six-month (2.465%) and 12-month (2.763%) rates. The evolution of the Euribor directly affects the mortgage credit market in Portugal, especially variable-rate loans, where these rates are key to calculating monthly instalments. Six-month Euribor remains most relevant in Portugal The six-month Euribor, which became the most used in Portugal for variable-rate mortgage loans in January 2024, rose to 2.465%, up 0.006 points from Friday. According to Bank of Portugal data for February, the six-month Euribor accounted for 39.18% of the stock of variable-rate owner-occupied mortgage loans. In the same period, the 12-month Euribor accounted for 31.73% and the three-month Euribor for 24.79% of the total. The 12-month Euribor also rose this Monday to 2.763%, up 0.028 points from the previous session. The three-month Euribor increased to 2.170%, up 0.007 points. Monthly Euribor evolution and ECB context In March, the monthly average of the Euribor rose across all three maturities, with a stronger increase in the longer terms. The three-month average increased by 0.098 points to 2.109%. The six-month Euribor average rose by 0.178 points to 2.322%, while the 12-month rate increased by 0.344 points to 2.565%. The Euribor rates are calculated based on the average rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market.
Source: Adobe Stock Author: Redaction Bank of Portugal result in 2025 The Bank of Portugal (BdP) recorded a €1.4 million loss in 2025, using accumulated provisions to absorb part of the result. According to the Board of Directors’ report, the Bank of Portugal’s result before provisions and taxes (RAPI) remained negative at -€304 million, although this represents an improvement compared to 2024. The Bank of Portugal’s performance reflects the evolution of the interest margin, influenced by the trajectory of benchmark interest rates, which turned positive over the year. Provisions and impact on BdP results The Bank of Portugal used accumulated provisions to offset the negative result, allowing a nil result before taxes. Even so, the Bank of Portugal’s net result stood at -€1.4 million, influenced by the reduction of deferred tax assets and autonomous taxation. In 2024, the Bank of Portugal had already resorted to similar mechanisms to offset a significant operating loss, highlighting the recurring use of provisions in the central bank’s results. Balance sheet and financial evolution of the Bank of Portugal The Bank of Portugal’s balance sheet reached €211 billion in 2025, reflecting a significant increase compared to the previous period. This evolution of the Bank of Portugal is linked to the appreciation of gold prices and the reduction of securities held for monetary policy purposes. Operating expenses totalled €222 million, with increases mainly in staff costs, while external supplies and services recorded a slight decrease.
Source: Adobe Stock Author: Redaction Mortgage moratorium uptake increases The mortgage moratorium created by the Government has been requested by around 7,400 customers, both households and businesses affected by bad weather, according to data released by the Bank of Portugal (BdP). In total, loans covered by the mortgage moratorium amount to around €930 million up to the end of March. This figure represents less than 1.5% of household mortgage credit and around 4% of business loans in the affected regions, showing a relatively contained impact on the financial system. Households and businesses use the mortgage moratorium According to the BdP, around 40% of mortgage moratorium requests were made by households, while most applications came from the business sector. The Deputy Governor of the Bank of Portugal, Clara Raposo, stated that 60% of the 90-day mortgage moratorium requests were submitted by companies, mainly medium-sized and export-oriented. The use of the mortgage moratorium reflects the impact of bad weather on economic activity and on the ability to meet financial obligations. Assessment of the mortgage moratorium impact The Bank of Portugal stresses that data on the mortgage moratorium are still preliminary and should be interpreted with caution. According to Clara Raposo, the available information is incomplete and does not yet allow a final assessment of the mortgage moratorium impact. The central bank states that only at a later stage will it be possible to analyse in more detail the effects of the government measures linked to the mortgage moratorium. Economic impact of the mortgage moratorium The BdP also notes that there is no evidence of misuse of the mortgage moratorium, including credit recycling practices. According to central bank projections, bad weather could reduce economic growth by around one tenth in 2026, despite recovery efforts in the affected areas. The mortgage moratorium is therefore seen as a temporary support measure in response to extreme weather events.
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