Portuguese banks rush to promote PPR plans before year-end tax deadline

Time is running out to slash your 2024 tax bill. Discover why Portugal’s PPR plans are a hot topic—and the risks savers should consider first.

, and Administrator

2025 November 20 . 10:01 AM

1 min read

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Portuguese banks rush to promote PPR plans before year-end tax deadline

Portuguese banks and insurers are urging customers to open a Pension Savings Plan (PPR) before the end of the year. The push comes as tax incentives make these plans more attractive. However, not all PPRs deliver strong returns, leaving some investors disappointed with their savings growth.

Financial institutions like CGD, BPI, Santander Portugal, and several insurers offer PPR products. These plans allow savers to deduct 20% of their contributions from taxable income, up to set limits. For those under 35, investing €2,000 could increase their tax refund by €400. People aged between 35 and 50 can deduct €350 if they contribute €1,750. Over-50s investing €1,500 can claim a €300 deduction.

The deadline for opening a PPR with 2024 tax benefits is December 31. While tax deductions provide short-term savings, the real test is whether the plan delivers growth over time. Investors must weigh fees, performance, and tax efficiency before committing to a PPR.