IRS Withholding Reduced by 50% in Madeira for November

Hand-painted cream and cobalt picture of the Assembleia Legislativa da Madeira, the regional parliament in the old Alfândega in Funchal, with no people — AI-generated illustration after a photo by Palickap, CC BY 4.0, Wikimedia Commons. This illustration is shared under CC BY 4.0.

What happened

The Regional Government of Madeira decided to adapt a 50% reduction in IRS withholding tax for November, a measure initially announced by the Government of the Republic on 13 October. This decision, published in the Official Journal of the Region, applies half of the usual withholding tax to dependent work income and pensions paid between 1 and 30 November. The adaptation follows the unanimous approval in the Legislative Assembly of a new reduction in regional IRS rates, proposed by the Regional Government. This exceptional reduction aims to compensate for deductions made since 1 January 2026, allowing taxpayers to benefit early from tax relief.

What it means for you

The 50% reduction in IRS withholding applies to income and pensions paid between 1 and 30 November, with the exceptional regime ending on 30 November. Related guide: Digital nomad life in Madeira: visa, internet, and routine.

Sources

Publication times are the times on the source items, in Europe/Lisbon.

Diário de Notícias, 2026-10-30 08:45 — Retenção de IRS cai para metade em Novembro

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