Source: Adobe Stock Author: Redaction Since September 1, new IRS withholding tables have been in effect, aiming to balance and adjust the deductions made by Portuguese taxpayers, resulting in greater savings. This measure will provide relief for many families, with effects in September and October (new changes will be introduced in November and December). In practice, this change will allow many to recover the excess deductions they made since January this year. It also means that for retirees, pension amounts up to 1,202 euros gross will not be subject to IRS withholding. Therefore, those earning a salary of up to 1,175 euros gross will have 0% IRS withholding in September and October. For more details, the new tables are available for public consultation on the tax authoritys portal. Read more about: Registering land: where and when? Find out , Discover the worlds most curious constructions.
Source: Freepik Author: Redaction The decree-law that stipulates the conditions of the public guarantee in the purchase of first housing, own and permanent, by young people up to 35 years, was published this Wednesday, July 10, in Diário da República, and the measure is expected to advance within 60 days. According to the publication in Diário da República, the document establishes the conditions under which the State can provide personal guarantee to credit institutions with a view to the viability of granting credit to own and permanent housing to young people up to 35 years , fitting to the members of the Government responsible for the areas of finance, housing and youth approve, within a maximum period of 60 days from the entry into force of this Decree-Law, the regulations necessary to the provisions of this Decree-Law . In this way, all young people aged 35 years or less, who buy a house for the first time, will be able to resort to financing up to 100% of housing credit , with the State providing personal guarantee to credit institutions. With this benefit, young people can more easily buy a house, since it is possible to grant credit. According to the document, Banco de Portugal and the Portuguese Association of Banks were heard , stipulating that, in order to access the public guarantee, young people must comply with the requirements determined for this purpose, namely be between 18 and 35 years of age, with tax domicile in Portugal , and have income that does not exceed the 8th tier of the IRS. In addition, in order to be able to benefit from the financing, they cannot own another property that affects the house and the house they acquire cannot exceed the value of 450 thousand euros, being defined as the limit of the guarantee 15% of the transaction value . The Minister of Finance pointed out that the measure was developed jointly with Banco de Portugal, stressing that there is no dispute with Banco de Portugal on the matter, ensuring that Banco de Portugal is involved in the process, having been consultation and coordination with the financial supervisor. Read also: IMT exemption on house purchase will take effect in August
Source: Freepik Author: Redaction The Economic Acceleration Plan , with more than 60 proposals to foster economic growth in Portugal, was approved this Thursday , July 4, in the Council of Ministers, and with it, new measures that will advance, in particular the new regime for non-habitual residents which, in addition to involving scientists and researchers, will also cover other qualified professions. The ordinance of this measure will be published in Diário da República in the coming weeks, however, the Minister of Finance, Joaquim Miranda Sarmento, has already been able to say that this new regime will operate with a rate of 20% on the income of these non-habitual residents, foreigners or Portuguese immigrants who have not lived in Portugal for at least five years. The previous Government in the State Budget for 2024 (OE2024) created a standard in the Statute of Tax Benefits, we will regulate through ordinance this standard, covering exclusively the income category A and B, which will have a rate of 20% , indicated the Minister of Finance, during the conference where the plan was presented. Thus, according to the explanation provided by the Executive , the regime will apply to non-residents who will reside in Portugal and who have not lived in Portugal in the last five years, without having previously benefited from the regime of non-habitual residents (RNH). Read more topics like this in SUPERCASA Notícias to stay abreast of everything that happens in the country
Source: Freepik Author: Redaction Regarding its visit to Portugal for another evaluation under Article IV, the International Monetary Fund (IMF) has left some warnings for Government measures, namely the IRS Jovem, which may create a dent in public accounts. According to the IMF, the Young IRS may cause considerable losses of tax revenue, and does not guarantee the retention of young people in the country, being therefore uncertain . As indicated: age-based preferential rates of personal income tax (IRS) will lead to considerable loss of income, although their effectiveness in limiting youth emigration is uncertain . Since this is a measure that will cost around EUR 1 billion in revenue, which will no longer enter the state coffers, the IMF does not believe that it would generate positive revenue, and this measure provides for a maximum tax rate of 15% on taxable income, for young people up to 35 years. With regard, on the other hand, to the IRC and the Government’s proposal to progressively reduce this tax, the IMF clarifies that it can help align the average rate with the Eurozone average, while encouraging business growth. In this way, the international fund indicates that a comprehensive tax reform could reduce distortions and increase revenues, through a simplification of the system that reduces exemptions. In this way, it would give scope to compensate the losses resulting from the desired reductions in the tax increases the income of individuals and collectives. Follow also: IMF praises macroprudential measure of Banco de Portugal
Source: Freepik Author: Redaction The deadline for submitting the IRS is approaching its final stretch, and there is still a week left to submit it on the Finance Portal, with t he deadline being Sunday 30 June. Anyone who submits their IRS after the deadline runs the risk of having to pay a fine, which could range from 150 to 3,700 euros, as well as losing their right to tax deductions and exemption from IMI. As far as the tax authorities are concerned, if you havent yet received a refund, the deadline is 31 August. What are the consequences of submitting your personal income tax return after the deadline? Filing your personal income tax return after the legal deadline entails a series of negative consequences for the taxpayer, both financial and otherwise. It is crucial to be aware of these implications in order to avoid inconvenience and additional burdens. The main consequence of late filing of the IRS is the imposition of a fine that varies according to the length of the delay, and it is worth pointing out that although the minimum amount is €25, the amounts can be much higher in the event of wilful misconduct or negligence on the part of the taxpayer, or if the delay results in damage to the tax revenue. Another consequence is the payment of default interest on the amount of tax payable, calculated from the original deadline for submission to the date of actual payment. To avoid the negative consequences of submitting your personal income tax return after the deadline, its essential to organise yourself to meet the tax calendar . The Tax Authority (AT) offers various communication channels and online tools to make it easier to submit your tax return, such as the Finance Portal and the IRS Automático application. In the event of any doubts or difficulties, taxpayers can enlist the help of an accountancy professional or ask the AT itself for help. Remember: the filing deadline is next Sunday, 30th June. Make a note of this date in your diary and make sure you meet the deadline.
Source: Freepik Author: Redaction The extension of the access of Porta 65 Jovem, which includes the excuse of the prior presentation of a lease by the candidates, was approved this Friday, June 14, by the President of the Republic, Marcelo Rebelo de Sousa. According to the official note of the Presidency of the Republic, the President promulgated the Government’s decree amending Decree-Law 308/2007 of September 3, extending access to the Young Door 65 Program. This was a measure discussed in the Council of Ministers last May, in addition to several other proposals aimed at young people. Through the update contemplated in the decree, candidates are thus able to submit an application without having to submit a lease agreement in advance, in addition to being able to submit it with three payslips unlike the usual six. The Minister of Youth and Modernization, Margarida Balseiro Lopes, had already, at the time of the discussion of the proposal, indicated the importance of the update: this system does not make sense. Young people, first, go to the Housing Portal, will apply and will not attach any contract, nor promise of contract. And the State will tell this young man what is the value of the support he will receive and then [...] the young man goes looking for a house according to the value he will receive, and the young people will have two months to find a home, according to the new rules. Related topics that may interest you: What types of lease agreements exist? Know , Public guarantee in the purchase of house only goes up to 15% of the loan or Government will approve reduction of the tax burden in the IRS
Source: Freepik Author: Redaction The IRS tax return for last years income can be submitted until 30 June and, as the Ministry of Finance said last Friday, 31 May, the total value of refunds already paid is over 1,833.3 million euros, with 3,549,462 tax returns paid. According to the tax office, as of 29 May, 3,549,462 tax returns had been submitted and 1,901,064 refunds had been paid . To date, the average value of this years refunds stands at 964.35 euros, with payment taking an average of 22.4 days. This years IRS filing campaign kicked off on 1 June and since then 543,613 returns have been filed, of which 1,580,768 relate to the automatic IRS and 2,950,443 through the normal Model 3 filing. Read on: Cash payments fell 28 per cent in 5 years , Government to approve reduction in tax burden on young people or Home loans: Euribor rates falling
Source: Freepik Author: Redaction According to the law, it is the responsibility of the landlord to issue the respective rent receipt. So if you find yourself in a situation where you don’t have the receipts, know that this is a tax obligation of the landlord. As a rule, a quick access to the Finance Portal can check whether the landlord issued the receipts or not . If you have not done so, you must send the request to the landlord by registered letter. If you do not receive a response to your request by letter, and if you have already tried several ways to communicate this request to the landlord, you should report this non-compliance to the Finance. You also have the alternative of, in this case, submit to the IRS the amount of the paid rents . This will inform the Tax Authority that the landlord is in default. However, there are some exceptions, according to Ordinance No 98-A/2015, of 31 March: If the landlord is 65 years old or older, he may be exempted from this obligation, but he must always submit the annual electronic declaration of the total value of the rents; If it is a rent of a lease under the Rural Lease Scheme , the landlord is exempt from this obligation; Landlords who, in the last year, have not obtained income from this category in an amount greater than 2 times the IAS value. Is it clear? We also recommend: How to make a lease contract step by step , What types of lease contracts are there? , Will you be a tenant? Care to have before and after
Source: Freepik Author: Redaction Reducing the tax burden to relieve families and young people up to the age of 35 had already been discussed by the government led by Luís Montenegro, who announced last April the measure to reduce the IRS Jovem to a maximum rate of 15%, from which the last bracket is excluded, in favour of the high tax burden felt by the Portuguese, which prevents the creation of wealth, attraction of investment, job creation and better wages. According to the government, without better salaries, it wont be possible to retain our most qualified people , which is why, in order to promote this wage increase, a measure will be approved this Thursday, 23 May, in the Council of Ministers, setting the maximum rate of IRS Jovem at 15% for young people up to the age of 35 , which means, according to the governments statements, that our young people will pay 2/3 less in IRS compared to their current situation. The measure, however, is only due to come into force next year, as part of a package that includes various measures for young people, including exemption from IMT and Stamp Duty when buying a first home, or the public guarantee that will help finance this purchase. Joaquim Miranda Sarmento, Minister of Finance, pointed out last week that the measure will cost around one billion euros, compared to the current cost of 200 million and, according to the minister, since the measure costs 1.2 billion euros, the net impact is one billion . The proposal calls for the update of the IRS Jovem to be applied in a lasting and structural manner, which implies a 2/3 reduction in the currently applicable rates, with a maximum rate of only 15%, targeting all young people up to the age of 35, with the exception of the last income bracket, i.e. the 8th bracket. Keep up to date with other news: Lisbon launches tender for affordable housing , April: average house payment 1€ higher than in March
Source: Freepik Author: Redaction The European Commission’s spring forecast , made public this Wednesday, indicates a possible growth of the Portuguese economy for this year, of 1.7% . The estimate is more positive than that of the State Budget for 2024 and the Stability Program, which indicate growth of 1.5%. Banco de Portugal, on the other hand, reviews these projections downwards. In view of the winter forecasts, which indicated 1.2% growth, the Brussels revision for Portuguese economic growth for this year is high , with the same trend to be pointed out for 2025, in which a growth of 1.9% is expected: Economic growth in Portugal is expected to moderate further in 2024, before rebounding again in 2025, driven by private consumption and investment, the Commission report said. According to forecasts, Portugal will achieve the 15th highest growth rate in 2024, staying at the same level as Latvia. Among the countries of the European Union, estimates point to a growth of 1% of GDP this year and 1.6% in 2025 , while in the Eurozone the projection is 0.8% in 2024 and 1.4% in 2025. Headline inflation is projected to continue to decline over the forecast horizon in a context of steadily increasing employment and a relatively stable unemployment rate, note the Brussels Commissioners, with inflation expected to reach 2,3% this year and 1.9% in 2025. Regarding public accounts, the European Commission points out that this and next year there are budget surpluses of 0.4% and 0.5% , respectively, without accounting for the new measures and possible policies taken in the coming times, with the expected figures pointing out would follow the expected economic slowdown and moderation of inflation and balanced fiscal policy measures, including the reform of personal income tax included in the 2024 State Budget and discretionary increases in public wages and pensions. However, Commissioner Paolo Gentiloni indicated that the forecasts already contemplate the reform of the IRS announced by the new Government, with an impact beginning in 2024 and lasting until 2025. Thus, Portugal is pointed out as one of the four countries where there may be a budget surplus this year and next. The remaining countries are Cyprus, Denmark and Ireland. Keep abreast of other current issues: National public spending has been set at the equivalent of 42.3% of GDP , Labor costs grow again in the 1st quarter of the year
Source: Freepik Author: Redaction From 2025 the rents will be able to be deducted in the IRS up to a total of 800 €, compared to the current 600 € , since the proposal of the Socialist Party (PS) was approved this Wednesday, May 8, in the Assembly of the Republic. This will have received the votes against the PSD and CDS-PP and the favorable votes of the other parliamentary benches. In addition to this approval, several of the measures contained in the More Housing Program , created last year by the PS, were revoked and did not get the assent in the vote between deputies. As for the increase in the deduction of rents in the IRS, it is concerned a portion that can be written off to the IRS, with the value increasing from 600 € to 800 € , and that aims, thus, to reach progressively until 2028 the amount indicated for 2025, 50% and 25% until 2026. Keep abreast of everything that is happening today: CML’s tax revenue grew due to increased house purchases , Azores wants to use PRP to increase and improve public housing
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