1. Health Insurance: 15% Deduction on Health Expenses
Premiums paid for private health insurance for yourself and your tax dependents qualify as health expenses under Article 78-C of the Portuguese IRS Code (CIRS).
Taxpayers can deduct 15% of the total premiums paid, counting towards the global household health cap of €1,000 (or €1,250 for families with three or more dependent children).
If your employer provides private health insurance as a tax-exempt fringe benefit, only the co-payment deducted from your salary or paid out-of-pocket can be reported on your IRS return.
2. Retirement Savings Plans (PPR): Up to €400 Tax Credit
PPRs (Planos Poupança Reforma) remain one of Portugal's most tax-advantaged vehicles under Article 21 of the Tax Benefits Statute (EBF).
By investing in a qualifying PPR policy, you get a 20% tax deduction directly off your tax bill, capped according to your age:
| Age Group | Optimal Annual Contribution | Maximum Tax Deduction |
|---|---|---|
| Under 35 years old | €2,000 / year | €400 |
| Between 35 and 50 years old | €1,750 / year | €350 |
| Over 50 years old (until retirement) | €1,500 / year | €300 |
3. Mortgage Life Insurance: What the Law Says
For contracts executed after 2012, standard mortgage life insurance premiums are generally not deductible on personal income tax.
However, a key exception remains: life insurance policies covering individuals with an officially certified disability degree of 60% or higher remain deductible at 25% under Article 87 of CIRS.
4. Retrieving Statements via Appolices Wallet
Appolices Wallet automatically compiles official tax certificates from all insurers (Fidelidade, Tranquilidade, Allianz, etc.) into one encrypted folder.
Key Action Points:
- ✓Open Appolices Wallet and go to 'Documents & Certificates'.
- ✓Download the aggregated annual IRS statement.
- ✓Compare with Box 6C of Annex H on Portal das Finanças.
In Summary
Taking full advantage of legal tax credits can return hundreds of euros to your bank account every year. With Appolices Wallet, you ensure no policy is overlooked.
Frequently Asked Questions
Is car insurance deductible for individuals in Portugal?
No. Private motor insurance is not tax-deductible for individuals. Only commercial policies or self-employed vehicles in Category B can count it as an operating expense.