The Budget and Major Options of the 2026/2030 Plan for the municipality in the Faro district were approved by a majority vote in the Municipal Assembly last Monday, with 14 votes in favor from the Socialist Party (PS), four abstentions from the Social Democratic Party (PSD), and votes against from Chega (7), CDS-PP (2), Unidos por Portimão Coalition (BE/Livre) (1), and the Liberal Initiative (1).

The financial document had been approved by a majority vote at the council meeting last week, with four votes in favour from the PS executive and one councillor from Chega, abstentions from the two PSD councillors and one Chega councillor, and one Chega councillor voting against.

The total revenue and expenditure projected by the municipal executive for this year amount to €98.3 million, a decrease of €5.5 million compared to last year's €103,844,417.

According to a statement from the municipality, the document envisions an overall tax reduction of €1.8 million and prioritises housing, urban renewal, mobility, and education, while maintaining social support and free school meals.

The reduction in the tax burden reflects "a fiscal policy oriented towards social justice, support for the local economy, and the sustainability of municipal finances," the municipality states.

Thus, the municipality decided to reduce the IMI (Municipal Property Tax) rate for assessed urban buildings from 0.38 percent to 0.37 percent, while also maintaining tax benefits for primary and permanent residences, with increases based on the number of dependents in the household.

The IMI exemption was extended for another two years for properties intended for primary and permanent residence with a taxable asset value of up to €125,000, with the variable participation in IRS (Personal Income Tax) set at 3.5 percent.

At the same time, the municipality decided to exempt companies with a turnover of up to €150,000 from the municipal surcharge, covering most of the local business sector, and to apply a rate of 0.8 percent to the remaining companies.

Housing is a central priority, with the implementation of the Local Housing Strategy, the construction of new homes, and the rehabilitation of the municipal housing stock, "responding to one of the main social needs of the territory," it notes.

Public investment amounts to €35.5 million in 2026 and totals €225.9 million between 2027 and 2030, including projects such as the extension of Avenida Paul Harris, the urban and sports requalification of Quinta do Amparo, and the rehabilitation of Casa Manuel Teixeira Gomes.

According to the municipality, the budget approval "occurs in a new pluralistic political context, marked by a relative majority, and results from a broad effort" of dialogue, with the integration of proposals from the different political forces represented in the municipal bodies.

In this context, he adds, the incorporation of short-term projects such as the creation of the Municipal Police stands out, "demonstrating a vision of governance based on institutional responsibility, respect for the democratic functioning of local government bodies, and placing the public interest above logics of political obstruction."