The year 2025 begins with rising prices in several key sectors in Portugal, marking a continuation of the cost-of-living increases seen in 2024. Portuguese families will face increases in areas such as rents, tolls, utilities, telecommunications and even essential consumer goods like bread or milk. However, the government is also introducing measures to offset these effects, with wage and pension increases and tax reforms designed to improve household disposable income. Here's a detailed overview of the expected changes.
2025: Price rises, tax adjustments and new measures in Portugal
Rent :
In 2025, rents could rise by up to 2.16 %, or 2.16 euros for every 100 euros of rent. Thus, a rent of 750 euros could increase by 16.20 euros.
Landlords who have not adjusted rents in the last three years will be able to apply cumulative increases of up to 11 %, depending on previous years' coefficients.
However, this update remains optional: owners are not obliged to apply it.
Tolls and public transport:
Freeway tolls will rise by an average of 2.21 %, affecting in particular Lisbon-Porto (+€0.70) and Lisbon-Algarve (+€0.60) routes. Crossings of the Vasco da Gama and 25 de Abril bridges will also cost 5 cents more for class 1 vehicles.
Conversely, some former Scut roads, such as the A4 and A13, will become free.
Public transport will see an increase of 2.02 % from January. However, monthly season tickets for the Lisbon and Porto metropolitan areas will remain unchanged.
The new Circula.PT pass will offer a discount of 50 % for citizens with a disability of 60 % or more, and a discount of 25 % for the long-term unemployed, thus extending its accessibility to the entire national territory.
Utilities and telecommunications :
Telecoms prices will rise for operators such as Altice Portugal, with the exception of their Uzo and Moche offers. Other operators, such as NOS and Vodafone, will maintain current rates, with a few one-off adjustments for businesses.
Natural gas rates will rise by 6.9 % for households on the regulated market.
Electricity prices, on the other hand, will fall. Families on the regulated market will benefit from reductions ranging from 0.82 to 0.88 euros, thanks to an increase in the consumption ceiling subject to the reduced VAT rate (6 %). In the liberalized market, electricity bills are expected to fall from 6 % to 7 % with major suppliers such as Galp and EDP.
Essential consumer goods :
Production costs, particularly for bread and milk, will continue to fuel price rises in 2025.
Coffee prices could rise by 10 to 30 centimes per cup.
Veal meat, which has already seen an increase of 30 % in 2024, will continue to rise, partly due to growing exports to China and Ireland.
Compensation measures and tax adjustments
Wages and pensions :
The national minimum wage (SMN) will increase by 50 euros, reaching 870 euros on the mainland and 915 euros on Madeira.
Retirement pensions will be revalued according to their amount. For example, pensions up to two IAS (1,045 euros) will increase by 3.85 %, while those between six and twelve IAS (6,270 euros) will rise by 1.85 %.
Tax reforms :
The IRS bracket thresholds will be raised by 4.6 %, and the exemption threshold will rise to 12,180 euros, in line with the increase in the SMN.
The IRS Jeune scheme will be extended, with application over a 10-year period for income up to 55 IAS per year.
The self-employed will see their withholding tax reduced from 25 % to 23 %.
Grants and subsidies :
The "complément de solidarité pour les personnes âgées" (CSI - solidarity supplement for the elderly) will increase by 4.99 %, reaching 630.60 euros.
Unemployment benefit will also be increased, to a maximum of 1,306 euros.
Other notable changes
Taxation and real estate:
More than half of all municipalities will apply the minimum IMI tax (0.3 %) by 2025, including Lisbon, Sintra and Faro.
Imported vehicles will benefit from reductions in ISV, encouraging lower costs for cars with high CO2 emissions.
Culture :
Tickets for iconic cultural sites such as the Tomar Castle or the Musée National de l'Art Ancien will increase, reaching up to 15 euros for some.
Non-essential products :
Tobacco and alcoholic beverages will see their prices rise from January, despite stable taxes.
The year 2025 promises to be marked by a combination of price increases and compensatory measures. While families will have to cope with a higher cost of living, the government is implementing wage adjustments (which will be the primary cause of price increases) and fiscal measures to mitigate these effects. However, the overall impact of these changes remains to be seen, particularly for the most vulnerable households and businesses facing rising costs. Prudent management and further adjustments may be required to ensure economic equilibrium.
