PPR Reimbursement – COVID-19 exceptional situations

Retirement Savings Plans (PPR´S) subscribed until March 31, 2020 can be redeemed without penalty, under the terms of paragraph 4 of article 21 of the Tax Benefits Statute, until September 30, 2021, by the holder as long as one of the members of the household complies with the requirements provided for in point 1 of article 362 of Law No. 75-B/2020 of 31 December.

The total or partial redemption, with a monthly limit on the value of the IAS, per holder, provided they are justified with the proper documentation, can be requested according to the following reasons:

1. Prophylactic isolation
2. Disease
3. Assistance to children/grandchildren
4. Lay-off (suspension of employment contract)
5. Unemployment
6. Eligibility for extraordinary income support for workers
7. Situation of economic and social deprotection
8. Situation of reduction of the normal working period
9. Break in the relevant average monthly income
10. Situation of support for the reduction of the economic activity of the self-employed person, who is not a pensioner (Art. 26 of DL no. 10-A/2020)
11. Situation of beneficiary of the deferral regime for the payment of rents as a lessee in a lease contract for an urban building for own and permanent housing. In this case, the value of the plans to be reimbursed can go up to the monthly limit of 1.5 IAS.

The applicable limit per beneficiary and per insurer (and not per contract) is:

• € 438.81 per month (value of the Social Support index – IAS in 2020), for the situations indicated in paragraphs 1) to 10), inclusive;
• € 658.22 per month (value corresponding to 1.5 of the IAS in 2020), for the situation indicated in paragraph 11).

📄 Law 75-B / 2020, 2020-12-31 – DRE

Who is it for?
The request for reimbursement is possible for people who comply with the requirements provided for in point 1 of article 362 of Law No. 75-B/2020 of 31 December.

Until when can I request the redemption of my PPR?
The term for exceptional redemption of the PPR was extended until September 30, 2021, according to Law 75-B/2020 (OE for 2021).

If I redeem my PPR will I be penalized?
According to the Law, if the request for redemption falls under the conditions provided for in the Law, the delivery values redeemed with less than 5 years of age, the penalty provided for in paragraph 4 of Article 21 of the Articles of Association will not be applied. Tax benefits. This exception of no penalty will apply only to the conditions referred to above, with special attention to the reason indicated by the Customer and provided that the contract has been signed by March 31, 2020.