The proposals from the PAN, Chega, PCP, and BE to amend the State Budget proposal for 2026 (OE2026) were rejected with votes against from PSD and CDS-PP and abstentions from PS.
For several budgets since António Costa’s governments, opposition parties have advocated for changes to IRS rules allowing all homeowners to deduct a portion of the interest on their primary residence mortgages from their IRS.
Currently, there is an inequality among taxpayers, as interest deductions are only available to those who purchased homes before December 31, 2011, allowing them to annually deduct 15% of the interest, up to 296 euros.
Those who signed contracts from January 1, 2012, onward cannot deduct any amount.
In OE2026, PAN proposed the deduction of mortgage interest without restrictions based on the purchase date of the home, maintaining the deduction limit at 296 euros, as existing for those who bought homes until 2011.
Chega aimed to allow equal deduction for all, setting the deduction cap at 600 euros.
The party presented a second similar proposal, maintaining the cap at the current 296 euros for those who bought homes before December 2011, which was also rejected.
Similarly, PCP sought to allow deductions without date restrictions, setting the maximum deduction amount at 350 euros.
BE also wanted the deduction to apply without restrictions based on the date of home purchase and proposed increasing the limit to 360 euros.
