What happened
Chega's parliamentary group in the Legislative Assembly of Madeira has submitted a bill proposal to the Assembly of the Republic. The proposal seeks total tax exemption and relief from withholding tax on income from supplementary work, night work, productivity bonuses, and holiday and Christmas allowances. This initiative aims to increase families' disposable income due to the rising cost of living, as recent partial reductions in withholding tax rates are considered insufficient. The plan includes full exemption for overtime, removing withholding tax and associated taxation, including a tax penalty that applies from the 101st annual hour, and IRS exemption for night work performed between 22:00 and 07:00.
What it means for you
Night work performed between 22:00 and 07:00 could be exempt from IRS under the proposal. Related guide: Digital nomad life in Madeira: visa, internet, and routine.
Sources
Publication times are the times on the source items, in Europe/Lisbon.
- JM Madeira, 2026-10-21 12:44 — Chega propõe isentar horas extra e subsídios de IRS
- Diário de Notícias, 2026-10-21 12:28 — Chega propõe isenção fiscal para horas extraordinárias e subsídios
Written with AI assistance from official and cited sources. Report an error: hello@madeirajournal.com.
Drafts are checked against the source links above. Corrections: editorial policy.