Legal and Tax Update
The month of July brings legislative and tax news with a direct impact on citizens and businesses.
The Government has presented proposals to reform the Nationality and Residency Laws, introducing stricter criteria for obtaining them. At the same time, a reduction in IRS (personal income tax) for 2025 has been confirmed, which will ease the tax burden for thousands of taxpayers.
In this edition, we summarize these measures to help you clearly understand how they may affect you.
Reform of Nationality and Residency Laws
The Government has proposed changes to the nationality and residency laws, aiming to reinforce legality and control over immigration processes. These changes respond to a significant increase in applications and the need to ensure greater integrity in the system.
What’s changing:
✔️ Residency time will no longer count automatically during pending SEF (AIMA) processes;
✔️ Valid residency time will only start after actual approval of the residence permit;
✔️ Acquiring nationality will require stronger proof of real ties to the country;
✔️ Legal status requirements are reinforced, even after five years of residence.
These measures mainly affect foreigners in naturalization or family reunification processes, as well as regimes such as that for digital nomads.
IRS Reduction: What’s Changing in 2025?
The new State Budget includes a reduction in IRS rates to take effect in the next fiscal year. The tax relief applies to various income brackets and can lead to meaningful savings.
Examples of impact:
Family with 2 children and €3,000/month income:
Estimated annual savings: €550
Single worker earning €1,200/month:
Annual reduction of about €120
Retiree with a €1,000/month pension:
Modest relief, focused on the first tax bracket
This measure aims to boost families’ disposable income and support sustainable economic recovery.
Como estas mudanças o podem afetar?
Estamos disponíveis para ajudá-lo a:
🔹 Avaliar o impacto fiscal da nova tabela de IRS no seu rendimento líquido;
🔹 Rever a sua situação de residência ou processo de nacionalidade à luz da nova legislação;
🔹 Preparar documentação ou tomar decisões estratégicas com base nas mudanças anunciada
