Portugal – Budget 2026

The government presented the 2026 draft Budget Bill to the parliament including amendments to the list of items subject to the reduced VAT rate. As per the draft, olive oil production activities are changing from the standard VAT rate of 23% to be subject to 6% VAT rate in mainland Portugal and 4% in the Autonomous Regions of Madeira and Azores starting from 1st January 2026. This change will align operations of transforming olives into olive oil with the applicable reduced rate for the final olive oil products.