Madeira Residents to See Reduced IRS Withholding in 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 PESP/ Wikimedia, CC BY-SA 4.0, Wikimedia Commons. This illustration is shared under CC BY-SA 4.0.

What happened

The Regional Government of Madeira has published new withholding tax tables. Order 434/2026, published on 29 October, dictates that only 50% of the usual withholding tax will be applied to salaries and pensions paid during November 2026. This measure allows the effects of an additional IRS rate reduction, retroactive to 1 January 2026, to be immediately reflected in the disposable income of Madeiran and Porto Santo families. The Finance Secretariat has urged companies and payroll services to apply these adjustments to payments made between 1 and 30 November.

What it means for you

The measure applies to payments made between 1 and 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.

Funchal Notícias, 2026-10-30 19:47 — GR diz que madeirenses vão pagar menos retenção na fonte de IRS já em Novembro

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