Portugal’s government has approved Decree-Law no. 49/2025, introducing several tax simplification measures to boost economic competitiveness. These measures focus on reducing compliance costs, improving transparency, and refining tax justice procedures.

This Law was issued by the Presidency of the Council of Ministers on 27 March 2025.

To reduce compliance costs, unnecessary declarative obligations will be eliminated, including certain forms in the Simplified Business Information (IES) and VAT-related documents. In some cases, periodic VAT returns will be automatically submitted, simplifying the process for taxpayers.

The government has also introduced a simplified export certificate, eliminating the need for a customs export declaration while still ensuring VAT exemption and input VAT deduction.

On the other hand, aiming to boost exports and simplify customs and tax procedures for postal and express shipments of goods valued under EUR 1,000, the requirement to submit a customs export declaration to obtain proof of dispatch is waived. VAT exemption and the right to deduct input VAT are maintained through the issuance of a simplified export certificate by the AT.

Additionally, withholding tax obligations will no longer apply for amounts under EUR 25, further simplifying tax procedures for smaller transactions.

Taxpayers will have more flexibility with VAT regimes, with the option to choose between monthly or quarterly submissions. The government has also harmonised compliance deadlines, with personal income tax deadlines now set for February 2026.

The requirement for a mandatory tax audit regularisation meeting has been removed, making this process optional. Furthermore, property transfer tax exemption certificates will now be available online, eliminating the need to visit local tax offices for this purpose. The need to submit physical property valuation plans has also been removed.

In other changes, the obligation to submit a declaration of commencement of activity for VAT purposes has been abolished for isolated acts exceeding EUR 25,000. The procedure for issuing invoices through the tax authorities’ website has also been extended to all VAT taxpayers in Portugal.