Portugal

Portugal is a low-wage country with “very limited response capacity in adverse shocks”

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 28/10/2026, 00:11:23 UTC.

Briefings

A study 'Portugal Fiscal' by FFMS published on October 28, 2026, reveals that half of Portugal's fiscal aggregates declared annual gross incomes up to 15,435 euros in 2024, equivalent to a monthly salary of approximately 1,102 euros. This concentration leaves a significant portion of the population with reduced or zero savings capacity to face economic shocks. The research highlights that while the progressive nature of the Income Tax System (IRS) is often assumed, a substantial part of the population lacks taxable income due to low earnings, and capital income is underreported, potentially distorting the true wealth distribution.

Key points

• In 2024, half of Portugal's fiscal aggregates declared annual gross incomes up to 15,435 euros, equivalent to a monthly salary of approximately 1,102 euros.
• Approximately 45% of the 6.2 million families covered by the tax system had no liquidated income tax in 2024, meaning they did not pay this tax.

Context

The study 'Portugal Fiscal' by the Fundação Francisco Manuel dos Santos (FFMS) analyzes fiscal data to assess economic vulnerability. It examines how low income levels limit financial resilience against shocks like job loss or housing price increases, noting that a significant portion of the population has no savings buffer. The research also investigates the limitations of the Income Tax System's progressive nature, specifically regarding the underreporting of capital income which could skew wealth distribution statistics.

Limitations

The evidence is limited to fiscal aggregate data from 2024, which may not reflect individual household income variations. Capital income, such as bank interest and dividends, is excluded from the reported figures and taxed at a fixed rate, potentially obscuring the true distribution of wealth. The study does not provide data on 2023 income trends or specific individual case studies, limiting the ability to generalize findings to all citizens.

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