Source: Freepik Author: Redaction Although it was already in force last year, the tax authorities have now announced new rules on tax payments , so if you are having difficulties paying your taxes, you should know that it is possible to pay them in installments , through the scheme created by the Tax Authority (AT) to ease the difficulties experienced by households. There is now a pre-enforcement phase applied to most taxes , in which it is possible to benefit from a period between the end of the voluntary payment date and the start of tax enforcement proceedings , as well as automatic installment plans for small debts. For larger debts, the AT allows you to apply for an installment payment plan , which must be made on the Tax Office Portal within 15 days of the original payment deadline. To make this request, you will need to provide your identification details, the origin of the debt and the number of installments you wish to pay in. This installment scheme obliges you to pay the first installment by the end of the month following the month in which you request the payment plan, and each payment is subject to interest on arrears calculated on the respective amount , backdated to the voluntary payment deadline, up to the month of the respective settlement. The installment payment scheme in the pre-enforcement phase applies to IRS, IRC, IUC, VAT and IMT taxes , with the latter two only being eligible when the assessment is made ex officio by the tax authorities. Are you clear? We have other news you might like: Increase in old rents to 2024 in line with inflation , Find out how to benefit from buying a gas cylinder or What are the implications of the rise in the minimum wage?
Source: Freepik Author: Redaction The State Budget for 2024 was approved last Wednesday, 29 November, in the Portuguese Parliament. The final overall vote saw the PS vote in favour, the Livre and PAN abstain and the PSD, Chega, IL, BE and PCP vote against. The President of the Republic had already announced the dissolution of the Assembly of the Republic , and consequently the scheduling of elections on 10 March 2024 , following the Prime Ministers resignation, however, he chose to let the budget bill for next year pass before signing and publishing the decree formalising the resignation. When this document is published by the head of state , which is expected in the next few days, the current government will go into management mode and its powers will be limited. This means that it will only be able to approve necessary acts, and any proposed laws will automatically lapse, according to the Constitution of the Republic . In the last few days of voting, several proposals were considered viable. In the area of housing , the ones that stand out the most are: Extending to 2024 the end of the penalty for Redemption of Retirement Savings Plans (PRR) for payment of instalments or amortisation of housing loans; Recovery of the IRS paid on capital gains generated by the sale of a house; Limitation of temporary tourist accommodation contracts to one per year; Increase in the deduction for rent expenses; Easing the end of the regime for non-habitual residents. Also follow: What are the implications of raising the minimum wage? or Cut in the Stress Rate is allowing more home loans
Source: Freepik Author: Redaction At the beginning of next year, the biggest increase ever recorded in the Guaranteed Minimum Monthly Wage (RMMG) will be applied, reaching 820 euros, an increase of around 60 euros compared to the current value. Although a pay rise is always welcome in the wallets of the Portuguese, this increase has some implications , which you will learn about throughout this article. Its worth remembering that were talking about the basic amount that employees should receive as minimum remuneration for their work . This amount is only earned by those who have an employment contract and is paid 14 times (12 times corresponding to the months of the year, once corresponding to the vacation allowance and once corresponding to the Christmas allowance). However, the minimum wage does not include food allowances, time off, diuturnities, subsistence allowances or other components that must be paid separately. At the moment, the minimum wage corresponds to 760 euros per month in mainland Portugal, 785 euros in the Autonomous Region of Madeira and 798 euros in the Azores. According to the Decree Law published this month, in 2024 this figure will rise to 820 euros, an increase of 7.9% which is, so far, the biggest increase ever. The guaranteed minimum monthly wage is laid down in the Labor Code (article 273) and is updated annually by the government, after consultation with the social partners and employers and trade union confederations. Updating the minimum wage must take into account various factors, such as price policy, workers needs and the rising cost of living. Impact of raising the minimum wage In addition to impacting workers, the rise in the minimum wage also affects a number of situations that use this figure as a reference, such as social security benefits. This means that some aspects may be affected, such as: Compensation for collective dismissal: the value of the basic salary for calculating compensation cannot exceed 20 minimum wages and the overall compensation cannot exceed 240 wages; Wage garnishment: the amount corresponding to the minimum wage is considered ungarnishable, except in the case of alimony; Social benefits: the Corrected Annual Gross Income (RABC), which is used to calculate social security benefits, subsidies and tax deductions, as well as to contest rent updates, is affected. What happens to deductions? Workers earning the minimum wage have a number of benefits, including exemption from paying personal income tax (IRS). They can also deduct IRS if the value of the food allowance is more than 6 euros, if it is paid together with the salary, or 9.60 euros, if it is paid by meal card. As for Social Security , you must contribute 11% of your salary. This means that, with a salary of 760 euros a month, you are paying 83.60 euros, and your net salary is 676.40 euros. With the increase to 820 euros, you will pay 90.20 euros into Social Security , and your net income will be 729.80 euros. Is it possible to pay less than the minimum income? Paying workers less than the minimum wage is only possible in the following situations: Part-time workers , for example; Trainees or other workers undergoing certified training, who can earn 20% less for a maximum of one year; Workers with reduced capacity or disabilities , whose reduction corresponds to the difference between full capacity for work and the coefficient of effective capacity for the contracted activity. Follow these and other topics in SUPERCASA News .
Source: Freepik Author: Redaction The Bilha Solidária proposal, developed to combat the energy crisis and the exponential energy prices charged, offers support of 10 euros per month for the purchase of a canister of liquefied petroleum gas (LPG). The measure, created by the government in 2022, will be extended until 2025, with the aim of responding to the needs of the most vulnerable families. Who can receive this support? According to the government, this program provides assistance to domestic consumers benefiting from the Social Electricity Tariff (TSEE), residing in mainland Portugal and holding an electricity supply contract. In addition to those mentioned above, this support can also be used by domestic consumers with the same contract, at least one of whose household members receives one of the following minimum social benefits. These are: Solidarity supplement for the elderly Social insertion income Social disability pension for the special disability protection scheme Social inclusion benefit supplement Social pension for old age Unemployment benefit Documentation required To access gas support, consumers must go to the respective Parish Council and present documentation proving their situation. For beneficiaries of the Social Electricity Tariff (TSEE): Current electricity bill that legitimizes taking advantage of the TSEE Invoice/receipt, or receipt containing the tax identification number (NIF) in the name of the holder of the electricity contract, beneficiary of the tariff , for the months between September and December 2022, proving the purchase of the LPG bottle Citizens card, residents card or passport of the holder of the electricity contract benefiting from the TSEE Declaration of acceptance of the processing of personal data under the General Data Protection Regulation (GDPR) For holders of one of the TSEEs minimum and disadvantaged social benefits: Document proving receipt of one of the aforementioned minimum social benefits for the previous or supporting month; Invoice/receipt, or receipt proving the purchase of the LPG bottle , dated between September and December 2022, referencing the respective NIF; Citizens, residents or passport card of the beneficiary of the support; Declaration of acceptance of the processing of personal data under the GDPR Since the platform that manages government support went live on November 9, incentives worth 243,830 euros have been awarded by the 1,590 parish councils that have signed up. The program has been extended until 2025, or until the sum of three million euros has been used up, according to a statement. Read also: What is ESG and how to apply it in your real estate agency and What certificates should my property have? SUPERCASA answers
Source: Freepik Author: Redaction The growth of tourism in recent years has led to a growth in the national economy driven by an increase in exports , however, the Portuguese economy is still predominantly sustained by domestic demand. Last year, GDP increased by 6.7 per cent, with domestic demand (private consumption, public consumption and investment) generating 70 per cent of that figure. This year, the Portuguese Public Finance Council predicts that this figure will fall to 50 per cent. However, the organisation anticipates that between 2024 and 2027, domestic demand will grow more than GDP itself. Although part of domestic demand is fuelled by imports , due to the scarcity or non-existence of some products on the domestic market, a considerable part of Portuguese consumption is satisfied by domestic production and guaranteed by interregional trade between the countrys seven main regions (North, Centre, Lisbon, Alentejo, Algarve, Madeira and Azores). This Monday, November 27, the Faculty of Economics of Coimbra launched a study for the Centre of Competences for Planning, Policies and Foresight of the Public Administration (PlanAPP) called Interregional trade in Portugal with the aim of exploring the exchanges between Portuguese regions and the economic impact triggered by public shocks or investments . Although international exports have been increasing consistently, interregional trade is fundamental to the national economy, with figures on the same order of magnitude as international trade, the study reads. Based on the year 2017, the study has a sample of 431 products produced by 125 branches of activity. It found that in the Lisbon metropolitan area (AM Lisboa) and the North region alone, interregional trade accounted for an average of 81 per cent of the wealth created annually in these regions. Not all regions show the same results, the majority show trade balances in deficit, however, the Lisbon metropolitan area and the Alentejo stand out as the only ones to show a positive interregional trade balance , i.e. they export more goods than they import from the other regions. At the top of AM Lisboas interregional exports are products under the heading Electricity, gas, steam and cold air , a phenomenon that is due to the headquarters effect that the region concentrates. Since the headquarters of E-Redes and other companies in the sector are in the Lisbon MA region, and part of the salaries and profits are distributed there, this means that part of the activity that is localised in the region serves to meet the demand that exists in other regions. This is what drives net interregional exports, reads the report. In the Alentejo, according to data from the study Interregional trade in Portugal, four products stand out: food, beverages and tobacco; coke and refined petroleum products, agricultural products, forestry and fishing, and electricity, gas, steam and cold air. The Alentejo is also the only region in the country with a trade surplus . However, according to the authors of the study, the contribution of the balances analysed here is different, since both the international balance of goods and services and the balance of goods and services related to tourism have a deficit balance, and the surplus of the interregional balance cancels out the deficits of the others, since the Alentejo region is mostly an exporter to the national territory . On the other hand, the Algarve and Madeira have the biggest interregional trade deficit, 29 per cent and 31 per cent of Gross Value Added (GVA) respectively, as they import almost twice as many goods as they export to the rest of the country. Read also: Teachers relocated to Lisbon and the Algarve will receive support or Centre Region has until the end of the year to implement PT2020
Source: Freepik Author: Redaction This Wednesday, the Monitoring Committee of the Centro Regional Programme met to approve the selection criteria for various types of investment, where the president of the Centro Regional Coordination and Development Commission (CCDR Centro) announced that this year there has been a strong execution of the Centro 2020 Programme, having exceeded 90% execution in October . This means that the Centre region still has to execute almost 10% of the funds that have been allocated in Portugal 2020 by the end of the year. At this meeting, we stressed the importance of speeding up the implementation of Centre 2020, in order to reach 100% implementation, said Isabel Damasceno. In turn, the approval of the selection criteria makes it possible to launch new tenders under Portugal 2030. According to the commissions president, by the first half of 2024, around 500 million euros of European funds are expected to be available to the Centre region. With the approval of the investment selection criteria, it will be possible to open new tenders, for example, for schools, urban regeneration, educational success and business hosting areas, she added. The PT2030 tenders were launched in the first quarter of the year, with the aim of encouraging the creation of projects in the areas of Incentive Systems for productive innovation for small and medium-sized enterprises, training, health, railways, the environment, fisheries and aquaculture, information and communication and technical assistance. Read also: Lisbon City Council presents 2024 budget and Support for innovative companies already has approved applications
Source: Freepik Author: Redaction The national banking sector is registering historic levels of profitability . In June last year, the turnover was 149 euros with the interest rate differential for every 100 euros of assets, having risen to 258 euros at the end of the second quarter of this year and, compared to the figures for the Euro Zone (137 euros with the same 100 euros of assets), the Portuguese banking sector has almost doubled its turnover . According to the Financial Stability Report, presented by the Bank of Portugal (BdP) last Wednesday, 22 November, the difference in the evolution of net interest income between Portugal and the euro area was mainly due to the greater increase in Portugal in the differential between the interest rate on loans granted and the interest rate on deposits, both for households and non-financial companies . The figures provided by the financial organisation reveal a solid balance sheet for the banks, with a year-on-year increase of 0.44 percentage points in Return on Assets (ROA) to 1.16% at the end of the first half, the highest figure since 2010. The improvement in ROA was based on the significant rise in net interest income as a percentage of assets from 1.49 per cent to 2.58 per cent (a contribution of 1.01 percentage points), which resulted from the sharp rise in interbank market interest rates and the differentiated transmission of interest rates on loans and deposits, with the latter registering a more gradual and partial adjustment, explains the organisation led by Mário Centeno in the document presented. Although the data is positive, there are still several challenges that the sector may face. The Portuguese banking system continues to be concentrated in real estate and debt securities, which account for 50 per cent of total assets, says the Bank of Portugal. Exposure to real estate , in June 2023, represented 35.4 per cent of assets, with loans to individuals guaranteed by real estate continuing to be the most relevant component with 26.2 per cent of assets. The portfolio of public debt securities accounted for 15.5 per cent of the banks assets at the end of the first half of the year, with 40 per cent of this exposure guaranteed by government debt securities. High interest rates can lead to an increase in loan defaults, however, the Bank of Portugal considers that the limited supply of new housing and the lack of an accumulated stock of available homes mitigate the impact on prices in the event of a reduction in demand , and the fact that the vast majority of debt securities are not in the banks trading portfolios removes the pressure on the balance sheet from a possible devaluation of assets. The Bank of Portugal therefore emphasises the increased importance for banks and supervisors of managing and monitoring interest rate risk in the coming months. Also read: Cut in the Stress Rate is allowing more home loans and BdP calls for the creation of a capital reserve against the property crisis
Source: Freepik Author: Redaction The reduction in the additional shock considered when calculating the stress rate , which came into force a month ago for the purposes of obtaining a home loan, is already allowing more families to access the loan by simulating their financial capacity in a situation where they are faced with a potential rise in the Euribor rate. In a scenario in which they would previously not have received the green stamp , credit intermediaries point to the viability of financing through the cut in the stress rate, which is allowing the calculation of the DSTI (debt servicing-to-income) ratio, in accordance with the amendment to macroprudential recommendation no. 3/2018 of the Bank of Portugal (BdP). This change allows financial institutions to consider the interest rate prevailing at the time of contractualisation , adding 3%, in order to assess the financial conditions of households in an adverse scenario in which Euribor rises again. The measure, which came into force on 16 October, has already made it possible to halve the level of stress to be applied to home loans to 1.5% , thus giving more families access to credit at a time when the real estate sector is increasingly weakened by rising house prices and interest rates . Early repayments of home loans up 64% In the first nine months of the year there was a sharp rise in early repayments of housing loans for the purpose of buying a permanent home. Up to August this year, they totalled 6.37 million euros, which is 64% in absolute terms, or 4 billion euros, up on the 2.29 billion euros recorded in the same period in 2022, according to the BdP. These calculations exclude financing for the purchase of a second home; however, it is known that 2.6 billion euros correspond to total or partial repayments made between January and March, the period in which the highest volume of debt write-offs to the bank was recorded. Also read: BdP calls for creation of capital reserve against property crisis
Source: Freepik Author: Redaction The Institute for Employment and Vocational Training (IEFP) has approved 111 applications for the Empreende XXI programme , which aims to promote entrepreneurship and create jobs. In total, the applications correspond to almost 7.3 million euros, which means that, on average, each project should receive support totalling 65 thousand euros. The programme was created in a partnership between the IEFP and Startup Portugal and calculates the amount of support given according to the number of jobs that can be created by the project under application , according to the Secretary of State for Labour. Applications for support ran from April to June and a total of 1,965 applications were submitted. Of these, 559 are still being analysed by the entities responsible for ascertaining the financial viability of the projects. The remaining 1,406 applications are already with the IEFP, of which 111 have been approved, 204 have been rejected and the rest are being analysed. Miguel Fontes proves that this is a programme with a high exclusion rate, since there is a great deal of selectivity, which is taking longer due to its complexity and innovative nature. However, he expects that by the end of the year all the applications will have a proposed decision . This programme seeks to promote the creation and development of new business projects by individuals registered with the IEFP with aid of up to 200,000 euros, part of which is non-repayable and the other is made via an interest-free loan. Follow this and other topics in SUPERCASA Notícias
Source: Freepik Author: Redaction The Bank of Portugal (BdP) has demanded that the largest Portuguese banks create an additional capital cushion , offering guarantees of protection in the event of a shock to house values . Thus, an additional capital reserve will be set up, corresponding to 4 per cent of the portfolio of loans to individuals, guaranteed by residential properties, forcing the banks affected by the measure to set aside around 400 million euros. At a time when new applications for home loans are slowing down and interest rates are on the rise, causing record profits for the banks , the capacity of this reserve emerges as a guarantee fund against the current state of the property market , which is witnessing a free fall in residential property prices. Thus, according to the BdPs stipulations , by 1 October next year the banks will have secured their capital reserves, and it will be up to the banking regulator to review this measure at least every two years. The banks that will have to comply with the new rule are BCP, BPI, Santander Totta and Novobanco , since they are not under the purview of the macro prudential recommendation, since they use their own risk parameters, estimated for use in calculating regulatory capital for credit risk. Caixa Geral de Depósitos, on the other hand, is excluded from the measure, in addition to Bankinter , which is still under evaluation according to the Bank of Spains decision, following the Bank of Portugals request for reciprocity, to determine whether or not the measure will be imposed on the banks Portuguese branch. Follow related topics in SUPERCASA Notícias
Source: Freepik Author: Redaction The possibility of redeeming PPRs (Retirement Savings Plans) came into force last year, allowing families to amortise them in advance to cover the cost of home loans without penalty. The measure has now been extended for another year by the Socialists, according to the proposal presented for the 2024 State Budget. For those wishing to buy their own permanent home , using early amortisation of loans for this purpose, the redemption value will more than double the Social Support Index (IAS) , corresponding to 5,765.16 euros. This IAS is currently set at 480.43 euros, for 24 IAS, which means it will rise to 12,245.28 euros, due to the 510.22 euro increase in the IAS from 2024. In addition to the redemption of Retirement Savings Plans, it will be possible to request, until next year, the total or partial reimbursement of the value of Education Savings Plans (PPE) and Retirement Savings Plans/Education (PPR/E) for the payment of instalments of credit contracts guaranteed by a mortgage on property intended for the participants own permanent home, as well as instalments of credit for the construction or improvement of properties for own and permanent housing, and transfers to housing cooperatives in solutions for own permanent housing, and are exempt from the minimum permanence requirement of five years for mobilisation without penalty, as the Socialist Party explained. In its explanatory note, the PS party also states that the early redemption, without penalty, of PPRs, PPEs and PPR/Es, can be a relevant mechanism to support families financial capacity, and a legislative solution was adopted in this area during the pandemic crisis. Before the extension, PPRs could only be redeemed early in situations of long-term unemployment of the subscriber or one of their household members, permanent disability or serious illness, so the values of these plans would only be available after retirement, when the subscriber reached the age of 60 or if it was used to cover costs with professional or higher education. Now, with the measure in force, the subscriber can do this in advance without penalty if the amount is used for the instalments of the housing loan , which means that, if they are not in the situations mentioned above, in which there is no penalty, they will have to return the tax benefit received to the State, in an amount increased by 10%. Also read: Housing: EU ministers call for debate on LA regulation , IRS: Find out how to make better use of your refund
Source: Freepik Author: Redaction The European Central Ban k (ECB) decided to keep its three key interest rates at the 4 per cent level at its latest monetary policy meeting. For Christine Lagarde, president of the ECB, keeping interest rates at the current restrictive level is a significant contribution to bringing inflation back to our 2 per cent target . Further interest rate rises are possible in the future, due to pressures from the Middle East on oil prices, but at the moment it is clearly premature to talk about reducing the key interest rates, says ECB vice-president Luis de Guindos. In October, inflation in the Eurozone fell to 2.9 per cent, close to the ECBs medium-term inflation target of 2 per cent. Another of the ECB leaders main objectives is to keep the deposit rate at 4% , a level she considers sufficient to control inflation . The monetary authority may, however, consider increasing borrowing costs if necessary, she said. Christine Lagarde believes that armed conflicts may create a need to review monetary policy , particularly the conflict in the Middle East, which could lead to a rise in the price of oil and thus affect the fall in inflation. Well see how everything evolves month by month, but our focus now is on keeping interest rates at this level for as long as it takes to achieve our goal, Luis de Guindos explained. Last year, inflation in the Eurozone stood at 10 per cent and has evolved globally positively so far , standing at 2.9 per cent, said the ECB vice-president, pointing out that it is necessary to be prudent and cautious due to the risks associated with inflation expectations for the coming months. On this subject, read also: Pause in interest rates doesnt stop house instalment increases
中文(简体)
Português
English
Français
Español
Deutsch
Nederlands
Русский
