Government Announces Tax Deadline Extensions for Fire-Affected Property Owners
The Portuguese Government has enacted new legislation to support taxpayers in regions recently affected by widespread rural fires. According to Decree-Law 98-A/2025, published on August 24, deadlines for fulfilling various fiscal and contributory obligations will be extended for residents and entities with a fiscal domicile in the designated parishes. The measure specifically includes the payment of the Imposto Municipal sobre Imóveis (IMI), the municipal property tax.
The new law, which takes effect immediately with retroactive application from July 1, grants the member of the Government responsible for Finance or Social Security the authority to issue an order to officially prolong these deadlines. This extension aims to provide financial relief to those impacted by the fires, allowing them more time to meet their tax duties without facing penalties. The decree states that compliance with the newly established deadlines will exempt the taxpayer from any associated surcharges or fines.
This fiscal support measure is geographically targeted, applying exclusively to taxpayers located within the parishes that the Government officially recognizes as having been most affected by the fires. The precise territorial scope is to be formally defined in a subsequent government order. The legislation is a direct response to the significant impact of the summer fires and is part of a broader package of support and mitigation measures.
A legal expert from a Lisbon law firm, Sofia Almeida, commented on the decree: "This is a standard but vital procedure in the wake of natural disasters. It provides a legal framework for the tax authority to temporarily suspend its normal collection schedule for affected citizens and businesses, ensuring they are not unduly penalized while recovering." The implementation will be managed by the Autoridade Tributária e Aduaneira (Tax and Customs Authority), which will await the ministerial order to adjust its systems and communications.
The decree also addresses labor regulations for personnel involved in the firefighting efforts. It stipulates that extraordinary work carried out by public and private sector workers under the Sistema Especial de Combate a Incêndios Rurais (DECIR) is to be classified as “extra work in cases of force majeure.” This classification exempts their overtime hours from the standard legal limits, facilitating a more robust and sustained response to the emergency. The government has stated that its primary objective is to ensure a swift and effective recovery process for the affected communities and to mitigate the economic consequences of the fires. Navigate Portuguese property regulations with expert guidance at realestate-lisbon.com.
