“The budget I present today, on behalf of the Regional Government, reflects a clear strategy of consistency, stability, and concrete action,” stated Duarte Freitas at the opening of the discussions of the Budget and Plan proposals for 2025 at the Legislative Assembly of Madeira in Funchal.
With the entire Madeira Government (PSD/CDS), including President Miguel Albuquerque, present in parliament, he added that “with rigor, stability, and ambition,” the executive proposes “advancing with fewer taxes, more competitiveness, and social justice throughout the region.”
According to the official, the first budget of this legislature resulting from the regional elections on March 23 “is not just for 2025 – it’s a commitment to the future Madeira, which aims to be stronger, more capable, more competitive, more autonomous, more sustainable, and more cohesive.”
The secretary emphasized that “for the tenth consecutive year, tax relief is once again an essential point of this budgetary strategy,” noting that Madeirans “will pay 157.4 million euros less in taxes” due to maintaining the maximum reduction differential of 30% compared to the national rate from the 1st to the 5th tier of IRS.
“And, for the first time, this maximum permitted reduction is extended to the 6th income tier, which means that gross salaries up to about 3,292 euros per month — equivalent to 3.3 minimum wages and above the average salary — will be covered,” he added.
Additionally, he indicated that “new decreases are introduced in the 7th tier — whose differential increases from 3% to 15% –, in the 8th tier — from 3% to 9% — and in the 9th tier — from 1% to 3%, benefiting all taxpayers in the region.”
Duarte Freitas also mentioned, among other fiscal measures, the introduction of the 30% differential on withholding tax rates applied to freelancers, with an estimated impact on tax revenue of 5.7 million, as well as the reduced VAT rate on hundreds of products and services and the reduction of VAT on electricity.
The proposal, on the other hand, strengthens “policies that promote the dynamism of private initiative and boost business activity” and investments aimed at enhancing tourism activities.
Duarte Freitas indicated that “it is a proposal in which public investment concentrates on areas where public action truly makes a difference,” highlighting the importance given to housing as “a sustained commitment, which does not depend on transitional programs, but on a consolidated regional vision.”
Housing, he stressed, is “the component with the greatest weight in regional investment, absorbing 24% of the total allocation” (a reinforcement “of more than 136 million euros”). This is followed by health, with 19% (104.2 million).
The official pointed out that the Madeiran executive has already delivered 171 homes, plans to complete another 275 by the end of the year, and another 359 in 2026.
The 2025 Regional Budget includes a reinforcement of salaries for employees of the Regional Public Administration, with a salary increase of 56.58 euros per month for salaries up to 2,620.23 euros, and an increase of 2.15% for salaries above that amount.
It also provides for the payment of the Insularity Allowance, set at 679.25 euros per year — 17.25 euros more than the amount practiced in 2024.
The Budget and Investment Plan proposals (the latter of 1.044 billion euros) are discussed in the Madeiran parliament between today and Friday.
Opposition parties have already indicated they will present around seventy amendment proposals.
