The budget and the Major Plan Options (GOP) for 2026 were approved by a majority at the Municipal Assembly meeting on 29 December 2025, with 14 votes in favour from the Socialist Party and 11 votes against, 6 from Chega and 5 from the Social Democratic Party, the municipality announced in a statement.

The document shows an increase of around 12 percent compared to 2025, making it the “largest budget ever” for the municipality in the Faro district.

“It is important that we have more and more financial resources at our disposal so that we can respond to the difficulties of the population, modernise the municipality and respond to the great challenges of the future,” said the Mayor of Lagoa, quoted in the note.

According to Luís Encarnação, “the demand is increasing,” and Lagoa has already shown that it is “up to the challenge.”

According to the local authority, the GOP is based on three main priorities: housing construction, replacement of the main water network pipes and redevelopment of public spaces.

The plan also includes five structural commitments in the areas of education, culture, social action, sport and the enhancement of public spaces.

The budget will allow for the continuation of works currently in progress and reinforce “policies considered a priority for the municipality, namely environmental policies, the creation of more green spaces, civil protection and security,” the document states.

The proposal will enable the Lagoa area to “continue to modernise, become more sustainable, better suited to new demands and better prepared to respond to the needs of the population”.

The plan prepares Lagoa “for the great challenges of the future, within the framework of sustainable development, in its economic, social and environmental dimensions”, says the local authority.

With regard to taxes, the municipality has set the Municipal Property Tax (IMI) rate at 0.36% for urban buildings, applying a reduction to buildings classified as owner-occupied and permanent housing, to buildings that have been rented continuously for more than 12 years and are used exclusively for the permanent housing of the tenant, and for households depending on the number of dependents. A reduction of €30 for families with one dependent, €70 with two and €140 with three dependents.

Regarding Personal Income Tax (IRS), the municipality will grant a 3% discount to individuals with their tax residence in the municipality.

On the other hand, the local authority has decided to increase the IMI rate by 30% for buildings or parts of buildings in poor condition, “which the municipality has ordered to be renovated” until the work is completed, and to introduce a 0.1% surcharge for companies for the 2025 financial year.