Reimbursement of PPR without penalty is extended until the end of the year

If you need savings, count on Poupança no Minuto. Our credit intermediaries help you throughout all processes: from renegotiating your contracts to transferring them. But understand what is at stake beforehand, if you have an PPR.

If you have a PPR, you will be able to continue withdrawing without penalties this year.

Do you have a PPR? The exceptional regime that allowed the rescue of a retirement savings plan without penalties has been extended until the end of 2024.

This means you can request a refund of your money from the plan, under certain conditions, without being penalized.

The exceptional regime of these financial products had been implemented for 2023, and is now in effect throughout the entire year of 2024.

"With the new amendment, the possibility for holders of retirement savings plans (PPR), education savings plans (PPE) and retirement/education savings plans (PPR/E) to request refund of the amount invested in those products without tax penalty is extended until December 31, 2024, up to the monthly limit of the Social Support Index (IAS)", as reported in a news article by Notícias ao Minuto.  

Note that currently, the value of the IAS is set at 509.26 euros.

According to the same news, this year it is still allowed to partially or fully refund the value of these products (PPR, PPE and PPR/E) without penalty, and "without the need for a minimum five-year commitment for mobilization and without limits on value", in these cases: 

• Payment of installments of credit contracts guaranteed by mortgage on property intended for the participant's own and permanent housing;  
• Payment of installments for credit for the construction or improvement of properties for own and permanent housing.
• "Deliveries to housing cooperatives in permanent own housing solutions"  

In addition, the permission to partially or fully reimburse the value of PPR without penalty or minimum five-year duration has also been extended, up to the annual limit of 24 times the IAS, in cases of early reimbursement in: "contracts secured by a mortgage on property intended for the participant's own permanent residence" as well as "construction or improvement loans for own permanent residence properties," the news says.

Please note that, by the end of 2024, credit institutions and similar entities are required to disclose on their platforms and official channels the possibility for customers to redeem their PPR, PPE, and PPR/E under this scheme.

Redeem your PPR to pay off your mortgage? Know that you don't need to, as there are other solutions to save money: review the contract terms or transfer it to a new bank. Talk to the credit intermediaries at Poupança no Minuto to learn about the possibilities and apply them to your specific case!