Photo: Adobe Stock Author: Redaction Review paves the way for a new rate Porto City Council will proceed with a review of the tourist tax regulations, starting a process that could result in an increase in the amount paid by visitors. The tourist tax is currently three euros per night, after rising from two to three euros in 2024. The proposal to be put to a vote by the council does not yet set a new amount. At this stage, it provides for a 10-working-day period during which interested parties can participate and submit contributions on the regulatory changes. The possibility of increasing the tourist tax to four euros has already been raised by the council, bringing the amount charged in Porto closer to that applied in Lisbon. Tourism grows and generates more revenue The review comes amid a period of growth in tourism activity in the city. Between 2019 and 2025, the number of overnight stays increased by 45.6%, exceeding 6.6 million last year. Over the same period, the number of guests grew by 37.2%, surpassing three million. The average length of stay also increased, from around 2.04 nights in 2019 to 2.16 nights in 2025. In the first six months of 2026, overnight stays rose by 4.48%, while the number of guests increased by 3.53% compared with the same period of the previous year. The growth in tourism was also reflected in municipal revenue. In 2025, the tourist tax generated €32.3 million, 54.5% more than in the previous year. Porto seeks to balance tourism and the city The council considers that the increase in visitor numbers also means greater use of public services and infrastructure, including urban cleaning, mobility, security, culture and heritage. In this context, the tourist tax is seen as a source of revenue to cover part of the costs associated with tourism activity. The review is also linked to the municipal strategy to fund free public transport for residents. At the same time, the council aims to maintain Porto as a tourist destination without compromising the quality of life of those who live in the city. The goal is to strike a balance between tourism activity and residents’ needs. Following approval to begin the procedure, a period will be opened for interested parties to participate. Only at a later stage is a specific proposal for the new tourist tax amount expected to be presented.
Photo: Adobe Stock Author: Redaction Banks increase focus on mixed-rate loans Mixed-rate loans have become the predominant option for new mortgages in Portugal. According to Banco de Portugal (BdP), this option accounted for around 80% of the value of new loans in the first half of 2026, after having only a marginal share three years ago. Between 2019 and 2021, mixed-rate loans accounted for around 10% of the amount lent, while variable-rate loans represented 86%. The shift gained momentum from 2022 onwards, amid rising interest rates and greater uncertainty over the future path of Euribor. The BdP also points to greater commercial focus by banks on this type of loan. Although uptake initially varied between institutions, these differences gradually narrowed over time. An option with fixed interest at first A mixed-rate mortgage combines an initial fixed-rate period with a subsequent variable-rate phase. This structure allows repayments to remain more stable during the first years of the contract, before the interest rate starts tracking a benchmark such as Euribor. According to the BdP, the price advantage of mixed-rate loans over variable-rate loans contributed to their growing demand. Until the transition from 2022 to 2023, mixed-rate loans were, on average, more expensive. The relationship then reversed and, in some months of 2024, the difference exceeded one percentage point. Legislation also began requiring institutions to provide simulations for fixed-, variable- and mixed-rate options when arranging mortgages for a main residence, making it easier to compare proposals. Portugal fixes interest rates for shorter periods Despite the growth of mixed-rate loans, the initial fixed-rate period in Portugal tends to be relatively short. The BdP indicates that the median has stabilised at around two years, while periods of more than ten years are more common in other euro area countries. This means that, once the fixed-rate period ends, repayments may begin to reflect changes in Euribor. Choosing a mixed-rate mortgage therefore involves considering not only the initial cost, but also when the contract enters its variable-rate phase. The supervisors data also show differences associated with borrowers profiles and loan characteristics. Contracts involving foreign borrowers or higher loan amounts make greater use of this option. Renegotiations after the fixed-rate period The first mixed-rate mortgages are now beginning to reach the end of their initial fixed-rate period. The BdP notes that around 20% of these loans granted in 2023 that had already moved to the variable-rate phase by March 2026 were renegotiated close to this transition. In around 40% of these cases, the renegotiation fixed the interest rate again for at least another two years. The data are still preliminary, as many contracts entered into since 2023 have not yet reached this stage. The evolution of mortgage lending is accompanying this transformation. In July 2026, household debt increased by €1.6 billion, of which €1.2 billion related to mortgages, according to the BdP.
Photo: Adobe Stock Author: Redaction Households record sharpest rise in debt Portuguese household debt grew by 10% in July , reaching the highest annual growth rate since the statistical series began in December 2008. Mortgage lending was the main driver of the increase in household debt during the month. According to data from Banco de Portugal, Portugals total economy-wide debt fell by €5.9 billion in July, to €887.6 billion. This reduction was entirely due to the public sector, as private sector debt increased by €2.4 billion. Household debt rose by €1.6 billion, of which €1.4 billion was owed to the financial sector. Mortgage lending accounted for €1.2 billion of this increase, while consumer loans and loans for other purposes contributed €200 million. Private companies also increase debt Private companies also recorded an increase in debt in July, although on a smaller scale. Debt in this segment rose by €800 million, contributing to the overall increase in private sector debt. The annual growth rate of private company debt stood at 4.4% in July, 0.7 percentage points higher than in the previous month. During the month, companies repaid €600 million in long-term debt securities, mainly securities held by non-resident investors. Conversely, €900 million in short-term debt securities were issued. Loans taken out by companies also increased by €600 million, mainly through the financial sector. Public debt declines in July The public sector followed the opposite trend to households and companies. Debt held by general government and public companies fell by €8.3 billion compared with June, to €386 billion. The main reason for the decline was the repayment of long-term public debt securities. Treasury bonds accounted for the largest share, with €9.3 billion in repayments. Despite the reduction, increased household investment in Savings and Treasury Certificates contributed €700 million to the rise in public sector debt. Private sector offsets economic decline Overall, private sector debt, which includes households and private companies, reached €501.5 billion in July. The data therefore show different trends across the various sectors of the economy. While the reduction in public debt brought down total debt, mortgage lending and rising corporate debt contributed to an increase in private sector debt. For households, mortgage lending stands out for its contribution to the monthly increase and for its 10% annual growth, the highest since records began in 2008.
Photo: Adobe Stock Author: Redaction Savings continues to follow an upward trend The amount invested in Savings Certificates increased for the 23rd consecutive month in August, recording year-on-year growth of 15.7%. According to data from Banco de Portugal (BdP), the total amount invested in these securities reached €44.604 billion, the highest level since the statistical series began in December 1998. Compared with July, the amount increased by €753 million. Compared with August 2025, the increase was €6.058 billion, reinforcing the upward trend in savings directed towards this instrument. This evolution follows a period in which demand for Savings Certificates was boosted by higher interest rates. The replacement of Series E with Series F in 2025 resulted in lower remuneration, but did not prevent savers from regaining interest in the product. Treasury Certificates lose value The performance of Savings Certificates contrasts with that of Treasury Certificates. In August, the amount invested in these securities fell to €6.441 billion, €91 million less than in the previous month and 24.2% lower than in the same period of 2025. The amount invested in Treasury Certificates is now at its lowest level since January 2015 and has been on a downward trend since October 2021. At that time, the amount had reached €17.865 billion. The latest IGCP data, referring to July, also show that €298 million in new Treasury Certificates were issued, while redemptions reached €326 million. New securities aim to attract savings In July, the Government presented the new Series 5 Treasury Certificates, which replace the Treasury Savings Value Certificates. The remuneration starts at 2.35% in the first year and increases progressively to 3.35% in the tenth year. The change aims to renew the range of products available to savers and could influence how savings are distributed among different public debt instruments. Government debt also increases BdP data also show that direct government debt increased by 1% year-on-year in August, reaching €315.889 billion. Compared with the previous month, the increase was €891 million. Among other debt securities, Treasury Bonds remained practically unchanged at €179.444 billion. Treasury Bills, meanwhile, increased by 12.6% to €13.633 billion. The evolution of Savings Certificates therefore stands out amid an increase in the amount invested in this type of product and a decline in investment in other public debt instruments.
Photo: Adobe Stock Author: Redaction Companies reported 407 procedures The number of collective redundancies recorded in the first eight months of 2026 increased by 13.4% compared with the same period in 2025, when 359 procedures were reported. The figures are included in the monthly reports published by the Directorate-General for Employment and Labour Relations (DGERT). The figure reached this year is the highest since 2020. During that period, marked by the pandemic, 455 collective redundancies had been reported between January and August. The trend has been upward in recent years. In 2024, 318 procedures were recorded over the same period, while there were 251 in 2023. In 2022, 201 were reported and, in 2021, 248. Lisbon accounts for most procedures By company size, DGERT data show that 188 of the procedures reported up to August originated in small companies. These were followed by micro-enterprises, with 118, medium-sized companies, with 70, and large companies, with 31. By region, Lisbon and the Tagus Valley remains in the lead, with 233 reported collective redundancies. The North follows with 113, while the Centre recorded 41 procedures. Alentejo and the Algarve each recorded ten. Despite the increase in the number of procedures, the number of workers affected followed a different trend. Fewer workers affected by the procedures Up to August, 4,843 workers were affected by collective redundancies, 9.2% fewer than the 5,332 recorded in the same period of 2025. Of the total recorded this year, 4,625 workers were actually made redundant. This represents an 11.3% decrease compared with the 5,212 workers made redundant in the first eight months of last year. In August alone, 570 workers were actually made redundant, below the 634 recorded in the same month of 2025 and the 624 recorded in July this year. Lisbon and the Tagus Valley accounted for 362 of the workers made redundant in August, representing 64% of the monthly total. Manufacturing leads redundancies in August In August, the manufacturing industry was the sector with the highest number of workers made redundant through these procedures. Among the reasons given by companies, workforce reduction accounted for 76% of cases. The closure of one or more sections or structures accounted for 17%, while total and permanent closure represented the remaining 7%. DGERT data therefore show an increase in the number of collective redundancies reported by companies, but a decrease in the number of workers affected and actually made redundant compared with 2025.
Photo: Adobe Stock Author: Redaction Less income tax withheld from salaries The income tax reduction approved for this year will begin to affect income received from November onwards. With the update to withholding tax tables, eligible workers are expected to have less tax deducted each month. In practice, this change may result in an increase in net salary, as a smaller share of income will be paid to the State through withholding tax. The additional amount available will, however, depend on each taxpayers income and tax situation. The measure applies to income tax brackets up to the sixth bracket and represents an estimated tax relief of around €400 million. Christmas bonus will also be affected The impact of the income tax reduction will not be limited to monthly salaries. The Christmas bonus received this year should also benefit from the new withholding rules. For households, this change may mean more disposable income in the final months of the year, a period when expenses tend to increase. The additional money may be used to increase savings, cover expenses or balance the household budget. However, an increase in net income does not necessarily mean that the annual tax due will be lower by the same proportion. Withholding tax works as an advance payment of the tax that will be assessed later. Lower withholding may reduce the refund Lower monthly withholding means that taxpayers pay less income tax throughout the year. As a result, the amount received as a refund when filing the annual tax return may also be lower than in previous years. Depending on each taxpayers income, expenses and deductions, there may even be additional tax to pay when the final tax assessment is made. The income tax reduction therefore allows part of the income to be received throughout the year, rather than only through a potential tax refund. For households, it is important to take this change into account when managing their budget and not automatically interpret the increase in net salary as a definitive tax gain.
Photo: Adobe Stock Author: Redaction Rates fall across the main maturities Euribor rates recorded further declines this Thursday, with all three main maturities posting lower values than in the previous session. The three-month Euribor rate fell by 0.028 percentage points to 2.633%, while the six-month rate dropped 0.011 points to 2.962%. The 12-month maturity recorded the sharpest decline, falling 0.029 points to 3.345%. Following this movement, three-month Euribor remains below the rates applied to the six- and 12-month maturities. Six months remains most widely used in Portugal Among the different maturities, six-month Euribor continues to be particularly important for variable-rate mortgage contracts in Portugal. Data from Banco de Portugal for July show that this maturity accounted for 39.87% of the outstanding stock of loans for permanent own-home purchases with variable rates. Twelve-month Euribor accounted for 31.26% and three-month Euribor for 24.40%. The daily movement comes after the European Central Bank raised its key interest rates by 25 basis points, following the decision to keep them unchanged in July. The ECBs next monetary policy meeting is scheduled for 28 and 29 October in Frankfurt. Despite the declines recorded this Thursday, monthly Euribor averages followed a different trend in August. All three maturities ended the month with average rates higher than those recorded in July. The three-month average increased by 0.088 points to 2.513%, while the six-month average rose 0.066 points to 2.713%. For the 12-month maturity, the monthly average increased by 0.099 points to 2.954%. Euribor rates correspond to average rates in the interbank market, calculated based on the rates at which a group of 21 euro area banks are willing to lend money to one another.
Photo: Adobe Stock Author: Redaction Energy gains weight in price increases Inflation in the Eurozone reached 3.2% in August, according to final data released by Eurostat. The figure is below the 3.3% indicated in the flash estimate published earlier this month, but represents an acceleration from the 2.9% recorded in July. Energy price developments played an important role in this increase. In August, this component recorded an annual rise of 14.3%, up from 10.3% in the previous month. Nevertheless, services made the largest contribution to inflation in the Eurozone, accounting for 1.43 percentage points of the final figure. Energy contributed 1.29 percentage points. Underlying inflation continues to slow Despite the acceleration in the overall index, some indicators point to a more moderate evolution in prices. Excluding energy, inflation in the Eurozone would have stood at 2.1%, down from 2.2% in July. Underlying inflation, which excludes energy and certain more volatile food products, such as fresh food, alcohol and tobacco, also declined. According to Eurostat, this indicator fell from 2.5% in July to 2.4% in August. Services recorded annual growth of 3%, below the rate seen in the previous month. The trend varied across the countries using the single currency. Romania recorded the highest rate, at 6.3%, followed by Lithuania at 5.6% and Cyprus at 5.2%. Portugal remains above the European average At the other end of the scale, the lowest rates were recorded in Sweden, at 0.3%, Estonia, at 1.3%, and the Czech Republic, at 1.5%. Compared with July, annual inflation fell in six Member States, remained unchanged in one and increased in 20 countries. In Portugal, Eurostat reports a harmonised inflation rate of 3.6% in August, 0.3 percentage points higher than in the previous month. This puts the figure above the Eurozone inflation average. The National Statistics Institute (INE) had confirmed an inflation rate of 3.3% for Portugal, according to the national index. The differences between the figures result from the methodologies used for the two indicators.
Photo: Adobe Stock Author: Redaction Anticipate the impact on the household budget A change in interest rates does not affect all loans at the same time. The date on which the repayment is reviewed depends on the index set out in the contract. Therefore, before making any decisions, check the next review date, the applicable Euribor rate and the spread. With this information, you can estimate the future home loan repayment and determine whether the household budget still has enough room. It is worth testing more than one scenario, including a further rise in rates, to assess the family’s financial capacity. This advance assessment can help identify potential difficulties before they arise. It can also help you decide whether it is preferable to keep the existing contract, negotiate new terms or look for another solution. Compare options before changing the loan If the repayment puts greater pressure on the household budget, the first step may be to speak to the bank. Renegotiation may cover the spread, term, index or interest rate type , depending on the agreement reached between the parties. Another possibility is to transfer the home loan to another institution. In this case, do not compare the monthly repayment alone. Analyse the APR, total amount payable, spread, term, insurance, associated products and transfer costs. Those with some savings may also consider making a partial early repayment. Reducing the outstanding capital lowers future interest, but it is important not to compromise the financial reserve needed for unexpected expenses. It may also make sense to consider a fixed or mixed interest rate. A more predictable repayment can make household budgeting easier, although it may limit the benefit of a potential fall in rates during the fixed-rate period. Review costs and seek help early Reviewing the home loan is also an opportunity to assess insurance and other products associated with the contract. A change may appear advantageous, but the overall cost should be compared, including any potential impact on the spread. If there is a risk of difficulty in meeting repayments, contact with the bank should take place before any payment default. The institution can assess the situation and present solutions suited to the customer’s financial capacity. For those preparing for a possible rise in interest rates, the most important thing is not to wait for the first higher repayment. Checking dates, running simulations and comparing alternatives in advance provides greater room to make a decision. It will not always be necessary to transfer the home loan, repay capital early or change the interest rate. The best solution depends on the contract, the evolution of interest rates and, above all, each family’s financial situation.
Photo: Adobe Stock Author: Redaction More resources to care for the city Lisbon City Council is preparing a new investment cycle aimed at improving the citys operations and the quality of the spaces used daily by Lisbon residents. In total, €21.5 million is planned for different areas of intervention. A significant part of this investment will be used to maintain pavements and street furniture. The works represent around €6.5 million and aim to ensure better conditions for the use and upkeep of public areas across the capital. The council will also strengthen street cleaning through cooperation agreements with Lisbons 24 parishes. The measure provides for a transfer of close to €5 million for operations such as street sweeping and emptying litter bins. Municipal services enter a new phase Digital transformation is another priority defined by Lisbon City Council. Around €15 million will be allocated over the next three years to modernise systems, reduce bureaucratic processes and make municipal services more efficient. The investment will make it possible to replace manual procedures and scattered information with integrated platforms. In this way, the council aims to bring together data on equipment, contracts, licences, applications and operations, making resource planning and management easier. The use of more up-to-date information should also help anticipate needs, monitor costs and improve the maintenance of municipal equipment. With more interconnected systems, it will be possible to reduce repetitive tasks and speed up responses to citizens requests. New portal brings online services together Technological modernisation should also be reflected in the relationship between residents and the council. The future CML Services Portal aims to bring different municipal services together in a single digital space. Access will be possible via the internet, mobile devices or with in-person support, allowing for a simpler and more integrated experience. This change aims to bring services closer to citizens and make procedures easier to complete. The new technological infrastructure will be supported by the Lisbon Data Hub, strengthening the councils ability to manage and cross-reference information across different areas of municipal administration. Digital security becomes a priority Strengthening the protection of municipal systems is part of this modernisation process. By 2029, around €2 million is planned specifically to increase information security and protect personal data. This investment should help make the municipal infrastructure more resilient to cyberattacks and other digital threats. The focus is also on ensuring greater service continuity and the ability to respond to potential failures. With these measures, Lisbon combines physical intervention in public spaces with the modernisation of services. The aim is to improve municipal management and create faster, more accessible responses suited to the citys needs.
Photo: Adobe Stock Author: Redaction Interest rates continue to influence credit The economic environment continues to impact Portugal’s credit market, particularly housing finance. Despite greater stability compared with the period of sharp interest rate increases, the cost of borrowing remains a key factor in household decisions. In June 2026, the average interest rate on new housing credit operations stood at 2.93%, reflecting an increase of 0.04 percentage points compared with the previous month. Changes in interest rates directly affect monthly repayments and consumers’ ability to take on new financial commitments. In this context, credit intermediation is becoming increasingly important, allowing different proposals to be analysed and financing solutions that are better suited to each client’s profile to be identified. Households are paying closer attention to financing Access to credit depends on several factors, from income and employment stability to the level of indebtedness and the value of the property. In a context of high house prices, these criteria become even more relevant. Preparing the financing process is therefore an essential step. An early assessment makes it possible to understand the client’s financial capacity and identify solutions that fit their budget. For professionals, specialised tools can simplify this process. eGO CRM Credit Intermediation allows process information to be centralised and the different stages to be monitored, helping intermediaries organise their activity and provide closer support to clients. Credit intermediation responds to new needs The diversity of financial institutions, products and financing conditions makes comparison increasingly relevant. For consumers, knowing the alternatives available can make a difference when choosing a credit solution. Credit intermediation therefore plays a role that goes beyond presenting proposals. Client support, process analysis and information management are important elements in responding to a more demanding market. Property market maintains demand for credit Developments in the property market remain directly linked to demand for financing. Despite the challenges associated with house prices and borrowing costs, demand for housing keeps credit intermediation as a relevant activity in the sector. For intermediaries, monitoring the economic environment is essential to anticipate changes in clients’ needs and adapt their commercial approach. In a constantly changing market, combining credit intermediation, technology and personalised support can contribute to more organised and efficient processes, allowing professionals to respond more quickly to market demands.
Photo: Adobe Stock Author: Redaction ECB changes rates from September The European Central Bank (ECB) has decided to raise all three key interest rates by 0.25 percentage points. The change will take effect on 16 September 2026 and comes amid new pressures on prices. With the decision, the deposit facility rate will rise to 2.50%, while the rate on main refinancing operations will increase to 2.65%. The marginal lending facility rate will stand at 2.90%. The rate increase aims to keep inflation under control and bring it closer to the 2% target over the medium term. Price developments remain, however, affected by international instability and rising energy costs. Inflation expected to remain above 2% The ECBs new projections point to headline inflation of 3% in 2026. The forecast is for a decline to 2.5% in 2027 and 2.1% in 2028, remaining above the target for part of the period. When energy and food prices are excluded, inflation is expected to reach 2.5% in 2026 and 2.6% in 2027, before falling to 2.3% in 2028. The evolution of interest rates will remain crucial for the eurozone economy. A more restrictive monetary policy can help curb rising prices, but it can also weigh on consumption and investment. Economy maintains growth outlook Despite the uncertainty, the ECB has revised upwards its forecasts for economic growth in the euro area. The economy is expected to grow by 0.9% in 2026, 1.4% in 2027 and 1.5% in 2028. The central bank considers that the European economy has shown greater resilience than initially expected. However, the international context remains uncertain, particularly due to risks associated with the conflict in the Middle East and developments in energy prices. Against this backdrop, the ECB is expected to continue assessing economic data at each meeting. Developments in inflation, growth and energy costs will be decisive for future decisions on interest rates.
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