No matter the amount or the date of issue, an early redemption of PPR for the payment of the mortgage loan is permitted through 2023.
According to the Ministry of Finance, early redemption of PPR for mortgage repayments is permitted through 2023 without incurring a penalty, regardless of the amount or the date of issue. The Ministry of Finance has stated, "Taxpayers who request the partial or total redemption of the PPR in 2023 for payment of instalments of own and permanent housing credit agreements can do so, without any limit as to the amount or time period already elapsed since the start of the contract, without penalisation.
If an early repayment is made for a purpose other than paying off the home loan instalments, two requirements must be met in order to avoid a penalty:
The repayment amount must not exceed the Social Support Indexer* (IAS);
It must be related to deliveries (subscriptions) made by September 30, 2022.
"Taxpayers with retirement savings plans (PPR) can redeem the PPR, without penalty, up to the monthly maximum of the IAS before 5 years after the start of the mortgage contract, provided that the refund is related to sums subscribed until September 30, 2022.
The rules outlined by legislation - either in Decree-Law No. 158/2002 or in the Statute of Tax Benefits - apply to monies requested to and invested after that date of September 30, 2022. (EBF).
According to the Ministry of Finance, the two circumstances—redemption without a stated justification or ransom for credit payment—are "cumulative," meaning that "the same taxpayer can simultaneously resort to the two categories of PPR redemption, within the prescribed limits."
It is only possible to request a monthly reimbursement up to the value of the IAS*, even though this limit may result from more than one policy. The monthly limit value of the IAS*, which is set at 480.43€ in 2023, is calculated "per taxpayer and not by policy or financial institution."
In the law published in October of last year, which includes several measures to lessen the impact of rising inflation on household incomes, the possibility of early redemption of savings-retirement plans (PPR), savings-education plans (PPE), and savings/retirement/education (PPR/E) plans is provided for. These plans can be redeemed without the penalties that are typically associated with it (such as the return of the tax benefit to the IRS).
This measure was strengthened in the State Budget for 2023. According to the budgetary law, "during the year 2023, the partial or total repayment of the value of the savings plans [PPR, PPE and PPR/E] is allowed for the payment of mortgage-guaranteed credit contract instalments on property intended for the participant's own and permanent housing, as well as benefits of the credit for the construction or improvement of properties for own and permanent housing, an increase in the value of the property for the participant'.
Early redemptions so enjoy throughout 2023 the same conditions as those in long-term unemployment, permanent disability from work, or serious sickness.
The Statute of Tax Benefits allows taxpayers up to 400€ (if they are under 35), 350€ (if they are between 35 and 50), and 300€ (if they are over 50) to get an IRS benefit equal to 20% of the amounts used in the PPR (over 50 years old).
EBF determines that, "This benefit shall be void, and the sums deducted, increased by 10%, for each year or fraction, elapsed since the one in which the right to deduct was exercised, shall be added to the collection of the IRS of the year of fact-checking, if the participants are allocated any income or is granted reimbursement of the certificates, except in the event of a death or when they have elapsed, which is at least five years from their delivery and any of the situations defined by law occur".
This penalty is waived for early redemptions in 2023.
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