Reform Savings Plans (PPR) were created to complement the old age pension, acting as a long term savings. However, although its nature is thought to the future, Portuguese law allows the early rescue of these products in various circumstances, and in many of these cases without the subscriber being penalized.
According to the legislation in force, the participant may raise the capital of the PPR at any time. The rule, however, changes if the holder has benefited from tax deductions in the IRS. In these cases, the early survey can only be done without penalties if it is framed in the situations provided by law.
When is it possible to raise the PPR at no cost?
According to the site specializing in economics and finance, ekonomist, the rescue of the PPR can be done without tax penalties in cases of old age reform, both the subscriber and the spouse, whenever the plan is considered a common quite. The same possibility exists in situations of long-term unemployment, permanent disability for work or serious illness, applying to both the holder and any element of the household.
The death of the subscriber, or the spouse when the PPR is considered a common good, is another of the conditions provided for by law. Also upon reaching 60 years of age is allowed to raise the accumulated value, provided that certain criteria are met.
Among the situations covered is also the payment of credit contracts to their own and permanent housing, as well as the entry or frequency of members of the household in vocational or higher education courses, provided they generate expenses in which the refund is made.
Additional rules
For those who have reached 60 or entered the renovation, it is only possible to raise the PPR/E if the contract is at least five years old. In addition, at least 35% of total deliveries must have been carried out during the first half of this period. The same rule applies when money is used to pay credit to housing or teaching expenses.
It is also important to distinguish the different products. In Savings Plans Reform and Education (PPR/E) It is possible to resort to the accumulated amount for higher education or professional expenses. In traditional PPR, this use is not contemplated. On the contrary, in the Education Savings Plans (PPE) it is not allowed to raise funds due to reform by old age or when it reaches 60 years.
Penalties in case of non -compliance
Outside legal conditions, early refund implies the return of the tax benefits obtained with the PPR. According to the Tax Authority, the amount will have to be refunded plus a 10% penalty for each year since the deduction.
In addition to the tax aspect, there may also be contractual penalties imposed by financial institutions. These apply mainly when the refund is requested before five years of contract, a period that may vary depending on the bank or insurer.
According to, rescuing a PPR ahead of time is possible, but it depends on the legal framework. The law opens several exceptions, from health problems to family or financial issues, allowing the aperler to access their savings without losing benefits. Outside these scenarios, the cost can prove high.
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