Portugal: the cigarette tax stays the same in 2027, for the fourth year in a row

On 8 October 2026 the Portuguese government tabled its budget proposal for 2027, Proposta de Lei no. 110/XVII/2. Unlike Germany, which raises its excise duties on 1 January 2027, Portugal changes nothing: no article alters the rates of the tobacco tax (imposto sobre o tabaco).

Cigarettes remain taxed at €151.88 per 1,000 cigarettes, plus 1% of the retail price, as they have been since 1 January 2024. Yet the State expects to collect more: according to the budget report, tobacco tax revenue should reach €1,864 million in 2027, compared with €1,725 million estimated for 2026, an increase of +8.1%.

What the 2027 budget contains

The only article amending the Excise Duties Code in 2027 concerns alcohol. For tobacco, the bill simply renews the rule on the share earmarked for health: up to 5% of the tobacco tax may fund smoking prevention, with the amount later set by an order of the Finance and Health ministers.

In the budget report, the "tobacco tax" line of revenue transferred to health falls from an estimated €180.3 million in 2026 to €34.1 million in 2027, a drop of 81.1%. The report does not break down what it includes.

Taxation frozen since the 2024 reform

The last real change dates back to the 2024 budget (Law no. 82/2023). Portugal then raised the specific part of the excise duty by about 35%, from €112.50 to €151.88 per 1,000 cigarettes, and cut the ad valorem part from 12% to 1%. Since then, the 2025 budget only changed how the minimum tax is calculated, and the 2026 budget mainly created a tax on nicotine pouches, at €0.065 per gram.

According to the European Commission's TEDB tax database, updated on 1 July 2026, the weighted average price of cigarettes in Portugal is €263.50 per 1,000, or €5.27 a pack, and taxes make up 77.3% of that price. The best-selling price category is €5.00 a pack.

What the sales figures show

With the fixed part frozen, revenue from cigarettes depends mainly on volumes. But the €1,864 million covers all tobacco products, and the report does not say what explains the rise. According to figures reported to the Commission, Portugal released 9.68 billion cigarettes for consumption in 2023, 9.07 billion in 2024, the year of the reform, then 9.47 billion in 2025 (+4.5%). In 2003 it released 19.6 billion, twice as many.

Portugal or Spain: where is a pack cheaper?

Spain is not changing its rates in 2027 either: the Cortes were dissolved on 5 October 2026, before any budget vote, as explained in our update on tobacco prices on 1 January 2027. Both neighbours keep their current taxation, and Commission data place them very close to each other.

On average, a pack is slightly cheaper in Portugal, and the best-selling category costs €1.25 less there. But these averages mix all brands, and a given brand may cost more on the Portuguese side. To compare brand by brand, see our Spain vs Portugal comparison, and for allowances, our guide to buying cigarettes abroad.

What happens after the vote?

Parliament can still amend the text before the final overall vote, expected on 24 November 2026. Further ahead, the revision of the EU tobacco tax directive would raise the minimum excise to €215 per 1,000 cigarettes, while Portugal's excise at the average price is €154.52 according to the Commission: if the text were adopted, the country would have to raise its rates (see our article on the tobacco tax directive). A stable price changes nothing about the health risks: if you are thinking of quitting, the SNS 24 line (808 24 24 24) refers people to quit support in Portugal, and Tabac Info Service answers on 39 89 in France.

Sources

• Bill no. 110/XVII/2, 2027 budget (articles 63 and 68), and its report (tables 4.4 and 5.38): Assembly of the Republic
• 2024 rates, article 103 of the Excise Duties Code: Law no. 82/2023
• Tax on nicotine pouches (article 104-D): 2026 State budget
• Average prices, tax share and cigarette sales, Portugal and Spain: European Commission TEDB database