Government proposes major tax breaks for under-35s // AIMA opens up ‘automatic’ renewal for expiring residency cards
Portuguese news in English on Tuesday, May 28, 2024.
Government proposes major tax breaks for under-35s
The Portuguese government has announced seven predominantly financial measures aimed at stopping young people from leaving the country, Diário de Notícias reports. They include a 15% personal income tax limit, a 15% public guarantee to buy housing up to €450,000 and exemption from stamp duty and the IMT real estate tax on that first home. All the measures are valid for people under 35 and the first two only for those earning up to €81,199, the top tax bracket. Speaking after the Council of Ministers approved the package, Prime Minister Luís Montenegro said it was aimed at telling young Portuguese it was “worth it to live in Portugal” and “they don’t have to emigrate in search of an opportunity”. The Democratic Alliance (AD) government would lift the cap on the Porta 65 rental assistance program. He said young people on lower tax brackets would be paying much less than 15%, as little as 4.4%.
The opposition Socialist Party (PS), which introduced a different package of tax cuts for young people, said it would oppose the measures as they stood but would be constructive, Lusa reports. It accused the government of trying to “trick” young people on the eve of the European elections and criticised the proposal for benefiting the rich much more than the less wealthy. Young Socialists secretary-general Miguel Costa Matos said someone earning up to €1000 would be about €55 better off each month while someone making five times that would take home an extra €1000 each month.
AIMA opens up ‘automatic’ renewal for expiring residency cards
The migration agency has opened up online renewal for residency cards expiring between April and July, Diário de Notícias reports. The “automatic” renewal would allow people to have a new título de residência sent to their address after completing the process and paying online, without having to go to a service counter. I have no idea if this is actually working or not. DN links to the old SEF portal, which you’ll probably know is not the most reliable site in the world.
The automatic functionality was created in 2020 during the pandemic, with new renewals supposed to be unlocked every quarter, but suffered months-long delays under the old SEF. The old government passed a decree that expired documents would be accepted until June 30 but other countries and many companies or schools don’t recognise this. There’s been no news of another potential extension.
Portugal won’t follow Spain in Palestine recognition
Portugal won’t join Spain, Ireland and Norway in announcing the immediate recognition of a Palestinian state, Público reports. Foreign Affairs Ministry sources said the recognition was expected to take place but the timing wouldn’t be the same as the other three. Portugal is currently aiming to be more of a mediator, a role it ended up in after pushing for Palestine to receive full United Nations membership rights. The idea is to try to build bridges within Europe and influence countries such as Germany who’ve so far been less favourable towards the Palestinian cause.
Court win for worker who lost half salary for taking plastic bag
The Supreme Court has handed a win to a Continente worker who had half their monthly pay docked after getting caught taking a plastic bag from the supermarket without paying, Jornal de Notícias reports. The court earlier this month ruled the punishment, which also included a 15-day suspension from work, “disproportionate”. The bag would’ve cost the company 2 cents, given that 80 per cent of the 10c cost goes to the state. The case had wound its way up through various courts as the worker fought the €367.50 penalty, pointing out they needed the bag to take their work uniform home. A Continente spokesperson said the worker had retired after 23 years with the company, during which they were “subject to other processes”, including one motivated by trying to steal something on sale in the store.
In brief
Zelenskyy to visit Portugal today and sign bilateral accord. The Ukrainian president’s visit scheduled for earlier in the month was cancelled because the situation in Kharkiv deteriorated. (Público)
Government to scrap forced rental and Airbnb tax. The Democratic Alliance decided it wanted to wind back the measures from the old government’s More Housing package, arguing they were chasing “scapegoats” through “aggressive and punitive political options”. (Público)
Social Democratic party wins again in Madeira. PSD said it wanted to “talk” with other parties to form a government after winning a minority in an election in which suspicions of corruption hung in the air over the party, which has been in power for almost 50 years.
Brussels refutes government. Risk of Portugal being suspended from Schengen zone 'doesn't exist'. The European Commission spokesperson was responding to a minister’s claims the country could be suspended for delays implementing a new border control system that’s required by the EU. (Eco)
Seven teacher unions reach agreement with government over service time. In September, teachers will receive 25% of the figure, which is tied to career progression and was temporarily frozen in the times of the financial crisis.
Redesigned government logo scrapped by new government wins design award. The minimalist logo was praised for presenting “simpler” visual concepts “inspired in the symbols of the republic” but with “contemporary characteristics”. (Público)
On a lighter note
Portugal’s Miguel Gomes has won the Best Director award at the Cannes Film Festival for his feature film Grand Tour. The major achievement, a first for a Portuguese filmmaker, will give greater visibility to the nation’s film scene on the world stage, Expresso reports. It’s been 18 years since a Portuguese film was represented at such a high level at the world's most prestigious cinema festival. There were six Portuguese productions in total at Cannes this year. Grand Tour producer Filipa Reis said she hoped the independent production’s success would incentivise cultural policy and bring a boost in investment in cinema and culture more broadly.
Oh and here’s some bonus meteor content.