Photo: Adobe Stock Author: Redaction Funding reaches 56 municipalities The Government has approved €2.02 million in funding for Sustainable Urban Mobility Plans (SUMP) in 56 municipalities. The support is provided through the Environmental Fund and aims to encourage sustainable mobility solutions adapted to the needs of cities and their residents. The approved amounts cover expenses incurred in 2025 and measures planned for 2026. Lisbon and Coimbra are among the municipalities receiving the highest levels of support, with amounts close to €75,000. Câmara de Lobos also stands out, with €60,000 allocated to implement its plan this year. In Porto, €55,400 is earmarked for measures to be carried out in 2026. Other municipalities receiving more than €50,000 include Viseu, Tondela, Loulé, Guimarães, Gondomar, Bragança, Braga and Barcelos. Braga receives maximum funding SUMP follow European guidelines for sustainable urban mobility and may benefit from funding covering up to 75% of eligible expenditure. Each measure or application can receive a maximum of €75,000, while the limit per municipality is €100,000. Braga is the only municipality to reach this maximum amount, through two applications scheduled for implementation this year. Coimbra, in addition to the funding planned for 2026, had already spent €15,750 in the previous year. The distribution of funding aims to address the specific needs of each territory, enabling local authorities to develop strategies to improve travel and make transport systems more efficient. Plans focus on more sustainable cities Sustainable Urban Mobility Plans aim to address the main challenges related to the movement of people and goods in cities. The focus on sustainable mobility involves creating more efficient, accessible and safe transport alternatives. Reducing air and noise pollution, greenhouse gas emissions and energy consumption is among the objectives of these planning instruments. The plans also seek to improve road safety, facilitate access to services and destinations, and make transport more cost-efficient. The quality of urban space is also taken into account, with measures that can contribute to more attractive cities that better meet the needs of the population. The approved funding aims to support municipalities in defining these strategies and implementing sustainable mobility solutions, taking into account the environmental, social and economic challenges of each territory.
Source: Adobe Stock Author: Redaction More than 900,000 foreign workers The presence of foreign workers in Portugal’s labour market continues to grow. In June, 906,019 citizens of other nationalities were paying Social Security contributions in Portugal, representing 18.6% of all contributors. Data analysed by Randstad shows that this population generated a net contribution of €363.13 million in a single month. During the same period, total contributions reached €427.82 million, 12.5% more than in June of the previous year. The majority of foreign contributors are aged between 20 and 39, with this age group accounting for 64% of the total. Their presence has therefore been gaining increasing importance within the national labour market. Contributions exceed use of social benefits Despite the increase in the number of foreign workers, their share among recipients of social benefits is significantly lower. In June, they accounted for 11.3% of the total, representing 186,823 people. This figure represents a year-on-year decrease of 9.7%, equivalent to 19,947 fewer beneficiaries. The figures therefore highlight the significant contribution made by foreign citizens to financing the social protection system. This trend is particularly relevant in a context of demographic change and growing labour needs across different areas of the economy. Employment continues to grow despite monthly decline Portugal’s labour market recorded a slight decline in July, with 7,100 fewer people in employment than in the previous month. Nevertheless, total employment remained above 5.3 million, reaching 5,347,000 people. Compared with July 2025, employment increased by 1.6%, with 82,900 more people in work. The active population, meanwhile, fell by 9,900 to 5,667,300. The unemployment rate stood at 5.7%, corresponding to 320,300 unemployed people. This represents a monthly decrease of 2,700 people. Salaries also continue to rise The average remuneration from dependent employment declared in June reached €2,058.34. This represents an increase of 5.8% compared with the same month of the previous year. Lisbon recorded the highest average remuneration, at €2,415.34, followed by Setúbal, at €2,193.30. Faro and Beja recorded the lowest figures, at €1,706.58 and €1,750.17 respectively. Against this backdrop, foreign workers are playing an increasingly important role in addressing labour shortages and maintaining the balance of Portugal’s labour market.
Source: Adobe Stock Author: Redaction Works contracts will have new thresholds The Public Contracts Code will change from 1 October, with new rules designed to make procurement processes simpler and faster. One of the main changes concerns the thresholds for choosing simplified procurement procedures. For public works contracts, the prior consultation procedure will now apply to contracts worth less than one million euros. Direct award procedures may be used for contracts worth less than €150,000. Currently, these thresholds are €150,000 for prior consultation and €30,000 for direct award. The thresholds will also increase for the purchase of goods and services. Prior consultation will have a threshold of €130,000, while direct award will have a threshold of €75,000. Execution projects gain greater flexibility The new rules also introduce changes to the execution of works. The contractor may propose changes to the execution project, provided that the project author agrees. This possibility only applies to parts of the works that have not yet been carried out. The changes may not alter the purpose of the works, compromise their quality or affect their functionality. Another change concerns the base price. The contracting authority will now be able to set this value in the invitation or procurement procedure documents, instead of it always being mandatory. New rules strengthen contract execution The new regime also establishes a 30-day deadline for the public contracting party to respond to a subcontracting proposal submitted by the contractor. If there is no response within this period, the proposal will be deemed accepted. In cases of unjustified delays or failure to comply with the work schedule, the project owner will also have greater powers. They may take administrative possession of the works and associated assets, continuing the work directly or through third parties. These measures aim to reduce the impact of delays and facilitate the completion of works when problems arise during contract execution. Technology and new proposals enter public procurement Digital transformation will play a more prominent role in public procurement. The new rules allow digital systems, including artificial intelligence, to be used in the planning, preparation and monitoring of procedures and contracts. The regime also establishes the “once-only” principle, to prevent companies from having to repeatedly submit documents that are already available through other entities. Another new feature is the possibility for companies, research centres and individuals to submit projects or solutions to the Public Administration before a tender is launched. The so-called spontaneous initiative aims to make it easier to present new ideas and solutions. The amendments to the Public Contracts Code will enter into force on 1 October 2026.
Source: Adobe Stock Author: Redaction RRP ends, but municipal works remain unfinished The completion of the Recovery and Resilience Plan (RRP) does not mean that all supported projects have been completed. The National Association of Portuguese Municipalities (ANMP) is now calling for a rapid assessment of works that are still underway and require additional funding. The aim is to identify which municipal investments had not been completed by 31 August and ensure that the projects can continue without jeopardising the work already carried out by local authorities. The ANMP considers this identification particularly important at a time when the next State Budget is being prepared. Among the projects causing the greatest concern are interventions in education and healthcare, as well as other municipal investments aimed at improving services provided to local communities. Portugal 2030 can ensure continuity To prevent works from being interrupted, the transfer of some projects to other sources of funding is being considered. Portugal 2030 is one of the possibilities for ensuring the continuity of municipal investments that were unable to meet the deadlines set by the RRP. Another alternative could be to include certain projects in the State Budget for 2027. The creation of transition mechanisms is therefore intended to prevent works that have already started from being left without the conditions needed to move forward. For municipalities, this coordination is essential to protect the municipal investments made in recent years and make the most of the resources already committed. Local authorities want to safeguard public investment Municipal councils have played an important role in implementing several projects funded by the RRP, taking on interventions that, in some cases, went beyond their usual responsibilities. The ANMP argues that this effort should be taken into account when defining solutions for projects that are still pending. The priority is to create rapid responses so that ongoing municipal investments can be completed. The continuation of these works could also have a direct impact on communities by improving public facilities, services and infrastructure. For municipalities, securing funding for pending projects is therefore a way of safeguarding public investment already made and avoiding the waste of resources. Next State Budget will be decisive With the State Budget for 2027 now being prepared, the coming months will be crucial in determining the future of projects that fell outside the RRP deadlines. The assessment of municipal investments that still require financial support should make it possible to find solutions for each case. Local authorities expect transition mechanisms to be simple and fast, allowing works to continue and planned projects to be completed. The ANMP also welcomes the achievement of the main national RRP targets, highlighting the contribution of municipalities to the implementation of investments and to improving living conditions for local communities.
Source: Adobe Stock Author: Redaction Labour market maintains stability The Portuguese labour market continued to show a stable trend in July. Data released by Eurostat, based on national statistics, show that Portugal’s unemployment rate stood at 5.7%, unchanged from the previous month. The figure also represents a slight year-on-year improvement, with a reduction of 0.1 percentage points compared with July 2025. Portugal therefore maintains a favourable position compared with most European countries. According to Eurostat, the unemployment rate reached 6.1% in the European Union and 6.4% in the euro area. Both indicators remained stable compared with June, although they increased slightly compared with the same period last year. Portugal remains below European average The data highlight significant differences between the labour markets of EU Member States. Finland recorded the highest unemployment rate, at 10.5%, followed by Spain, at 10%, while Czechia recorded the lowest rate, at 3.3%. In this context, unemployment in Portugal remains below the European average, despite the country continuing to face challenges related to job creation and income growth. According to the National Statistics Institute (INE), the stability recorded in July confirms the continuation of relatively low unemployment levels in the Portuguese labour market. Youth unemployment remains above average The trend is less favourable among younger workers. In July, Portugal’s youth unemployment rate reached 20.1%, an increase of 0.2 percentage points compared with the previous month. The national figure was above the European Union average of 15.1%, as well as the euro area average, which stood at 14.9%. The difference shows that young people’s entry into the labour market remains a challenge. In the EU, Estonia recorded the highest youth unemployment rate, at 26.1%, while Germany recorded the lowest, at 7.2%. Outlook remains dependent on the economy The stability of unemployment in Portugal comes against a backdrop of uneven developments across European labour markets. Despite the national rate remaining unchanged, the situation among young people continues to require attention. Future developments will depend on factors such as economic growth, investment and companies’ ability to create new employment opportunities. For now, Eurostat and INE data point to a stable Portuguese labour market with an unemployment rate below the European average.
Source: Adobe Stock Author: Redaction Companies find new opportunities in the market The changes to the Securities Code introduce relevant changes for companies seeking financing through the capital markets. One of the main new measures concerns the admission of shares to trading on regulated markets. The minimum percentage of shares that, as a rule, must be dispersed among the public, known as the free float, falls from 25% to 10%. This reduction may make it easier for some companies to list on the stock exchange and make the process more flexible. Small and medium-sized enterprises (SMEs) will also benefit from new opportunities. The Portuguese Securities Market Commission (CMVM) may register specific segments for growing SMEs within multilateral trading facilities. The measure aims to create better conditions for smaller companies to access financing through the capital markets. Investors gain access to more information The new framework also changes certain rules concerning investment recommendations. There is now greater flexibility in how certain services can be remunerated, although financial intermediaries must explain to clients how the payment is structured. Another new measure concerns issuer-sponsored research, which may be financed by the company being analysed. These studies must comply with specific rules and clearly identify this status. The Securities Code also introduces changes to takeover bids (OPAs). In certain circumstances, a stake reaching 90% of voting rights and share capital may allow the acquisition of shares that remain in the hands of other shareholders. Trading can also be suspended for as long as necessary The rules governing the suspension of trading in financial instruments are also changing. There will no longer be a need to automatically renew a suspension in successive ten-day periods. The interruption should remain in place only for as long as necessary to resolve the situation that led to it. Information about the start and end of the suspension will continue to be communicated to the CMVM and the market. These changes form part of a broader review of national rules aimed at aligning them with European legislation and simplifying certain procedures. Financial information will be easier to access The changes also include the progressive implementation of the European Single Access Point (ESAP), a European system designed to bring together public financial and non-financial information about companies and markets. The aim is to make these data easier to consult, compare and use through a single access point. Implementation will take place in stages, with some measures not expected until 2028 and 2030. The new Securities Code also introduces simplifications for certain companies undergoing liquidation or insolvency, reducing the periodic sending of certain statements when there have been no changes. Overall, the new rules aim to make the capital markets more accessible and efficient while maintaining information and investor protection mechanisms.
Source: Adobe Stock Author: Redaction More visitors and overnight stays in summer Data released by the National Statistics Institute (INE) show that tourism maintained a positive trend in July. Tourist accommodation establishments welcomed 3.4 million guests, 1% more than in the same month of the previous year. The number of overnight stays also increased, reaching 9.6 million, representing a 2.1% year-on-year rise. This growth was driven both by domestic demand and the arrival of international visitors. Residents accounted for 3.1 million overnight stays, up 5.1% compared with July last year. Overnight stays by non-residents increased by 0.7%, reaching 6.6 million. This growth also had an impact on sector revenues. Total revenue from tourist accommodation reached €923.7 million during the month. UK remains the leading source market The UK market remained the main source of overnight stays by foreign tourists in Portugal, followed by Spain. Among the main source markets, Poland recorded the strongest growth. France, on the other hand, saw the largest decline. The US market also recorded a 3.1% drop in overnight stays in July, its second decline since the pandemic period. The trend was not the same across the country. Alentejo recorded the strongest growth, with overnight stays up 7.7%, followed by the North, which increased by 6.3%. The Algarve, Greater Lisbon and the North accounted for 68.4% of all overnight stays recorded in the country, confirming the importance of these regions to tourism activity. Lisbon leads, but Porto gains ground Lisbon remained the municipality with the highest number of overnight stays, accounting for 15.9% of the national total. Albufeira ranked second, while Porto came third. Although it did not lead in terms of volume, Porto stood out for its growth rate. The municipality recorded 690,600 overnight stays, 5.5% more than in the same period of the previous year, the highest increase among the ten municipalities with the most demand. The average length of stay also increased. After three consecutive months of decline, the average stay rose by 1.1% to 2.83 nights. Madeira and the Algarve continued to record the longest stays, averaging 4.74 and 4.31 nights respectively. Overall, the figures show a growing tourism sector, although trends vary depending on the source markets and regions.
Source: Adobe Stock Author: Redaction Portugal among the main beneficiaries The Recovery and Resilience Plan (RRP) is expected to continue making a significant contribution to Portugal’s economy throughout 2026. Portugal is one of seven EU countries where spending funded by the Recovery and Resilience Facility and other European funds is expected to generate an expansionary impact of more than 0.5% of GDP. The figures come from an analysis by the European Commission’s Directorate-General for Economic and Financial Affairs, which places Portugal among the countries where European funds will have the greatest influence on economic activity this year. Only Greece is expected to record a stronger effect. The RRP’s weight in the Portuguese economy reflects the scale of the funding allocated to the country. Following the plan’s revision, the available amount increased to around €22.2 billion, strengthening its potential impact on investment and economic growth. Public investment acts as a buffer The impact of the RRP is particularly relevant in a year when the Portuguese economy is expected to grow at a more moderate pace. The Bank of Portugal forecasts growth of 1.8% in 2026, followed by 1.6% in 2027. The Portuguese Public Finance Council also expects investment to slow after the plan ends. According to its projections, investment is expected to grow by 4.3% this year, but by only 1.1% in 2027. The implementation of European funds therefore plays an important role. Increased public investment associated with the RRP helps offset weaker momentum in some parts of the economy and limit the impact of external factors. Funding implementation remains a risk Despite its positive contribution, the ability to fully use the available funding remains one of the main challenges. The Bank of Portugal identifies lower-than-expected implementation as a potential source of pressure on economic activity. The completion of the RRP is also expected to change the pace of public investment. As the mechanism comes to an end, its contribution is expected to gradually decline, highlighting the need to find alternative sources of funding to maintain investment momentum. The European Commission estimates that spending funded by the RRP and other EU funds will have a particularly significant effect on the Portuguese economy during the mechanism’s final year. RRP also affects public finances The impact of the RRP extends beyond economic growth. The implementation of European funds also affects public finances, particularly by funding expenditure that might otherwise have a greater impact on the budget balance. At the same time, some of the planned expenditure remains to be implemented. According to figures presented in the context of the 2026 public finances, Portugal still has RRP funding to deploy this year. The performance of the Portuguese economy will therefore depend on its ability to complete the planned investments before the programme ends. Beyond its immediate effect on growth, the use of the remaining funds will be crucial to preventing a sharper decline in investment once the RRP comes to an end.
Source: Adobe Stock Author: Redaction Basket price falls after previous increase The price of the food basket monitored by Deco Proteste fell again this week. The 63 essential products now cost €252.62, €0.93 less than the €253.55 recorded the previous week. Despite the decline, the total remains €10.79 higher than at the beginning of 2026. Compared with August 2025, the same products now cost €11.45 more. The current value is still well below the all-time high of €261.89 reached in May. Frankfurters and chickpeas among biggest increases Not all products followed the food baskets downward trend. Frankfurter sausages recorded the biggest weekly increase, at 16%, while the price of cooked chickpeas rose by 15%. Fresh hake also became more expensive, increasing by 8% to €11.99 per kilo. Compared with the same period in 2025, large cod recorded the biggest increase. Its price rose from €15.29 to €19.71 per kilo, an increase of 29%. Sea bass and sweetheart cabbage also recorded significant increases over the past year, of 24% and 22%, respectively. Carolino rice leads increases since January Since January, the food basket has seen significant price changes among the products monitored. Carolino rice recorded the largest price increase in 2026, rising by 30%. Sweetheart cabbage followed, with an increase of 29%, while gilt-head sea bream became 26% more expensive since the beginning of the year. The weekly trend therefore shows that a lower food basket price does not mean all products are becoming cheaper. Some goods continue to record significant increases, keeping shopping costs above the levels seen at the start of the year.
Source: Adobe Stock Author: Redaction Eurostat records rise in prices According to data released by Eurostat, the year-on-year inflation rate in the eurozone reached 2.9%, 0.1 percentage points higher than in June. In the European Union, the rate also increased by one tenth, reaching 3%. The increase was mainly driven by energy, with prices rising by 10.3%, compared with 8.5% in the previous month. Non-energy industrial goods became 0.9% more expensive, while services rose by 3.3%. On the other hand, fresh food prices increased by 2.4%, down from 3.1% in June. Core inflation also increases Excluding energy, inflation in the eurozone remained at 2.2%. Core inflation, which also excludes fresh food, alcohol and tobacco, rose from 2.4% to 2.5%. Eurostat data also show considerable differences between countries. In Portugal, harmonised inflation reached 3.1%. Spain recorded 3.9% and Italy 2.9%. Among the 27 Member States, annual inflation decreased in 15 countries, remained stable in three and increased in nine. Romania records highest inflation The lowest rates in the European Union were recorded in Sweden, at 0.3%, the Czech Republic, at 1.3%, and Denmark and Hungary, both at 1.6%. At the other end of the scale, Romania recorded the highest inflation rate, at 8.2%. Lithuania followed with 5.4%, while Cyprus and Bulgaria both recorded 4.4%. Price developments therefore remain significantly different across European countries. Inflation could remain close to 3% The European Central Bank’s chief economist, Philip Lane, expects eurozone inflation to remain close to 3% for the rest of 2026, mainly driven by energy and food costs. Future developments will also depend on external factors that could affect energy prices. Persistent inflation above the 2% target continues to keep the ECB’s monetary policy and possible interest rate developments in the coming months under scrutiny.
Source: Adobe Stock Author: Redaction The integration of the social unemployment benefit into the Single Social Benefit (PSU) is drawing criticism from the CGTP. The trade union federation considers that the change could leave some unemployed workers with lower social protection. This stance relates mainly to those who do not meet the conditions to receive unemployment benefit, either because they have not completed the qualifying period or because the award period has already ended. For the CGTP, these beneficiaries should remain covered by the social protection scheme associated with unemployment. CGTP highlights differences in protection The Single Social Benefit combines different components of social support, whereas the social unemployment benefit has a mixed nature. Access to the latter depends on conditions related to contributions as well as household income. According to the CGTP, the change could create differences in the duration and amount of support. The social unemployment benefit can be awarded for a longer period, depending on age and contribution record, whereas the PSU has its own rules on duration and renewal. The trade union federation also considers that the calculation of the PSU could result, in certain situations, in lower support, as the amount depends on assessed household income and the applicable reference amount. Impact could reach future pensions Another point raised by the CGTP relates to the registration of contributions. The organisation warns that changing the framework could have consequences for beneficiaries contribution records. The absence of equivalent contribution records during the support period could be reflected, in some cases, in future entitlements, including pension calculations. For the trade union federation, this is a significant difference between the Single Social Benefit and the previous unemployment protection model. The concern is that a measure intended to reorganise social support may end up reducing protection for those who have lost their jobs. Union calls for revision of rules In light of these differences, the CGTP advocates that the social unemployment benefit be removed from the scope of the Single Social Benefit and returned to the specific social protection scheme for unemployment among employees. The trade union federation believes that this solution would preserve rights associated with the duration of support, its amount, and the contribution records of beneficiaries. The discussion highlights the impact that reshaping social benefits could have on unemployed people with lower economic protection. For the CGTP, the new rules must ensure that reorganising support does not result in a loss of rights for those who lose their job.
Source: Adobe Stock Author: Redaction Buying a home can involve different tax costs Property taxes are not the same in every European country. When buying a home, transfer tax is one of the main costs to consider. Belgium has one of the highest maximum rates, reaching 12.5%, depending on the region. It is followed by England, at 12%, the Netherlands, at 10.4%, and Luxembourg, at 10%. In Portugal, the maximum rate indicated for this tax is 8%. In the comparison of 31 European countries analysed by Global Property Guide, Portugal ranks seventh among the countries with the highest transfer tax. On the other hand, Estonia and Czechia do not apply this tax, while Lithuania has a rate of 0.4%. Owning property also involves annual taxes After buying, property can continue to represent an annual tax burden. In Portugal, this is mainly covered by IMI, whose rate ranges from 0.3% to 0.8%, depending on the municipality and type of property. Spain stands out in this respect, with rates that can reach 4.8% in certain municipalities. However, the tax is based on the cadastral value rather than directly on the market value. Lithuania, Belgium, Germany, the United Kingdom and France also have high rates of this type of taxation. Cyprus and Malta, on the other hand, stand out for not applying an annual property tax. Portugal ranks 23rd among the 39 countries analysed for this indicator. Renting out a home can have a different tax burden Those who rent out a property may also have to pay tax on the income received. Here, the differences between countries are particularly significant. For annual rental income equivalent to €1,500, Denmark has one of the highest rates, followed by the Netherlands and Finland. At the opposite end, Cyprus does not apply tax to this income in this scenario. In Portugal, the flat rate on rental income is currently 25%, although different rates may apply in certain situations, particularly depending on the length of the tenancy agreement. Selling can generate capital gains tax Selling a property can also have tax implications when a capital gain is made. Taxation varies significantly between European countries. Denmark has one of the highest maximum rates, reaching 52.07%, followed by Luxembourg and Germany. In the latter, specific rules may allow the capital gain to be exempt when the property has been owned for more than 10 years. Malta, North Macedonia and Romania have lower taxation under this indicator. Portugal ranks 17th among the 39 countries analysed, with a rate that can reach 24%. Therefore, the tax cost of a property does not depend solely on its price. Before buying, renting out or selling a home in another country, it is important to understand the applicable taxes and the specific rules of local legislation.
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