PPR Tax Deduction in Portugal IRS 2026: Limits, How to Declare

By Hugo Ribeiro, Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting

The PPR deduction in the 2026 Portuguese IRS is 20% of annual contributions, capped at 400€ (under 35), 350€ (35-50) or 300€ (over 50).

PPR deduction limits 2026

Under 35: 20% up to 400€. 35-50: up to 350€. Over 50: up to 300€.

How to declare

Declared in Annex H of Modelo 3.

Redemption rules

Penalty-free: retirement, age 60+, long-term unemployment, serious illness, disability, or mortgage repayment. Early redemption otherwise: 21.5% rate.