Portuguese tax exemptions for meal cards to rise through 2029

The Portuguese tax authority, Autoridade Tributária e Aduaneira, reported that approximately 2.4 million workers in Portugal receive meal subsidies via bank cards.

These workers benefit from a specific tax exemption that is linked to the public sector meal allowance. The authority calculated these figures based on monthly remuneration declarations and tax models submitted by employers. The current tax exemption for meal cards allows workers to receive a subsidy of up to 10.455 euros daily without paying personal income tax.

This limit is calculated as 170 percent of the public sector meal allowance. In contrast, workers who receive the subsidy directly in their bank accounts with their salary face a lower tax exemption limit of 6.15 euros per day. A multiyear agreement between the Portuguese government and unions will increase the public sector meal allowance annually through 2029. This change will automatically raise the tax exemption for card holders.

By 2027, the exemption is expected to reach 10.710 euros, rising to 10.965 euros in 2028, and 11.220 euros in 2029.