Pan-European individual pension reform product now has the same tax benefit as PPR.

PEPP now has access to the same tax regime as PPR and Retirement Certificate.

According to a publication by Notícias ao Minuto, the Council of Ministers approved a bill to relieve taxation on financial savings instruments.

With the aim of allowing "greater encouragement to savings," the measure grants the pan-European individual retirement product (PEPP) the same tax benefit as retirement savings plans (PPR).  

The project was announced by the Minister of the Presidency, António Leitão Amaro, in order to fulfill one of the commitments of the Recovery and Resilience Program (PRR), now being sent for parliamentary review and approval.

"This is a goal and a commitment of the PRR that required Portugal to improve taxation on investment in capital markets, and there are a set of changes in the IRS that allow for greater incentive to saving in financial instruments including a more favorable tax regime similar to what exists for PPR in Portugal for a pan-European individual savings product," the news article reads, quoting the Minister.                                                                                                                                                                                                        

For this purpose, the pan-European savings product will have access to the tax benefit in IRS that PPR and Retirement Certificates already enjoy.

This product is regulated by European rules, but with the new tax regime, it will have more attractive conditions for Portuguese who invest in this type of savings.

"Leitão Amaro also said that this measure does not yet correspond to the fulfillment of that line of the Government's program that aims at a significant improvement in IRS in savings, noting that the vast majority of the norms of this diploma were prepared by the previous Government, within the framework of the commitments of the PRR."

Through this benefit, the amount invested in annual PPR can be deducted from IRS up to a limit of 400 euros per year, if the policyholder is up to 35 years old; 350 euros if the policyholder is between 35 and 50 years old, and 300 euros if the policyholder is over 50 years old. & Nbsp;

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