In a document presented to parliament today, it was revealed that municipalities will receive 3,227,628,792 euros for the Financial Equilibrium Fund (FEF), a general subsidy established by local finance law, equivalent to 19.5% of the simple arithmetic average of State-collected IRS, IRC, and VAT revenues.
Concerning the 5% participation in the Individual Income Tax (IRS) of taxpayers residing in the respective territory, which municipalities can choose to return in total or in part to residents, the government’s proposal specifies that these entities will receive 759,124,145 euros in 2026.
They are also set to receive 127,475,623 euros related to a 7.5% share in Value Added Tax (VAT) revenue, according to the local finance law.
