The Portuguese government announced a new economic stimulus package on May 23 to lower corporate income tax rates, encourage increased investment, and create more jobs to facilitate a rapid economic recovery.
According to reports, Portuguese Finance Minister Vítor Gaspar stated that to stimulate economic growth and encourage investment, the government will provide a 20% tax exemption for investment projects exceeding 5 million euros. To further support the development of small and medium-sized enterprises, the government also plans to reduce the corporate income tax rate from the current level of approximately 25% to as low as 7.5%.
Gaspar noted that the government hopes to create a better investment environment and favorable financing conditions for businesses through a series of fiscal and economic stimulus measures, thereby creating more jobs, particularly for young people.
Since the beginning of this year, the Portuguese economy has faced severe challenges. To meet the deficit reduction targets agreed upon with the "Troika" (the European Union, the International Monetary Fund, and the European Central Bank) and to secure subsequent international aid, the government has recently taken a series of measures to reduce public spending and stimulate economic growth.
