What changes in pension updates?

Until now, pensions granted by both the Social Security System and the Caixa Geral de Aposentações (CGA) were not updated in the year immediately following their assignment.

This delay, criticised by groups such as the Justice for Pensioners and Retirees Movement (MJPR), created financial challenges for many pensioners.
To address this, the Government has implemented a new rule which includes:

• Immediate annual updates: Pensions granted in the previous year will now be updated from 1 January of the following year, based on economic growth and inflation rates.
• Applicability from 1 January 2025: All pensioners who retired in 2024 will see their pensions updated in 2025.

How much will pensions increase in 2025?

Based on economic indicators and the Index of Social Support (IAS) value of €522.5, the 2025 pension increases are as follows:

• 2.6% for pensions up to €1,045 (twice the IAS).
• 2.1% for pensions between €1,045 and €3,135 (two to six times the IAS).
• 1.85% for pensions between €3,135 and €6,270 (up to 12 times the IAS).

Additionally, an extra 1.25 percentage points increase will apply to pensions up to €1,565.5 (three times the IAS), as approved in the 2025 State Budget.

What does this mean for pensioners?

This new rule represents an important step towards ensuring greater fairness in the pension system, especially during a period of rising inflation and increasing living costs.

If you have questions about how these changes may affect your pension or need legal support to understand your rights, the Reis & Pellicano team is here to help.

]]> https://reispellicano.com/en/international-will-a-guide-to-understand-cross-border-succession/ Mon, 25 Mar 2024 14:05:34 +0000 https://clientestheagency.website/rep/?p=1530 The increasing number of individuals relocating globally for education, employment, or to establish families abroad has led to significant cross-border succession challenges.

How do succession laws work in an increasingly globalized world?

In Portugal, the legal system governing the succession of individuals who lived and passed away in the country is the Portuguese law, determined by their habitual residence. This may pose challenges for foreigners seeking a more flexible succession system due to specific features of Portuguese succession law.

European Regulation

However, the European Regulation no. 650/2012 allows individuals to elect the law of their nationality to govern their entire succession, bypassing the applicability of Portuguese law.

Reis & Pellicano’s recommendation

To ensure your wishes are upheld, draft a will in Portugal, explicitly stating your chosen applicable law. This proactive step can provide clarity and security in navigating cross-border succession challenges.

The regulations are binding for both tenants and landlords, superseding, in case of doubts, any previous agreements between the parties.

Recommendation from Reis & Pellicano

Ensure your rental contract is reviewed or prepared by an experienced lawyer. This should guarantee that all legal formalities and protections are meticulously observed.

Duration

The father is entitled to 28 days of leave, which may be taken consecutively or intermittently, with a minimum of 7 consecutive days.

The first 7 days must be taken immediately after the baby’s birth.

PERIOD Remaining Period

The remaining 21 days must be taken within the first 6 weeks (42 days) following the birth.

Optional Days

Additionally, the father can enjoy 7 optional working days, which can be shared with the mother.

How to qualify

To access this benefit, it is necessary to meet some requirements such as:

• Having at least 6 months of contributions to Social Security and complying with the leaves and absences stipulated in the Labor Code;
• Social Security contributions must be up to date until the end of the third month immediately preceding the month in which you stop working due to the birth of your child.

The updates focused mainly on applicants with Sephardic Jewish ancestry, requiring them to demonstrate more concrete ties to Portugal, whether through inheriting property in the country or travelling regularly throughout their lives. However, the new rules have suffered a legal setback.⠀⠀⠀⠀⠀⠀⠀

A recent ruling by a Portuguese court concluded that these changes violated the principles of the Portuguese constitution, and therefore declared them invalid.

In this way, we will expand our range of legal services, consolidating our international presence, affording a number of benefits to our firm and our clients.

Key amendments include the elimination of construction permits and the introduction of tacit approval for licenses, streamlining procedures. Furthermore, there‘s no longer a requirement to present the housing technical data sheet at the time of property purchase contracts, reducing bureaucracy.

What has changed?

1. Elimination of Construction Permits

Construction permits will now follow a process of tacit approval, eliminating the need for a construction permit license. The construction permit document will be replaced by a receipt of payment for the required fees.

2. Elimination of Utilization Authorization

The old legal frame required that for a new construction or renovation works that required a project to be submitted, the Utilization Authorization would need to be issued by the municipality in order to have the property transacted and inhabited.

This process was simplified an the Utilization Authorization is not an essential document for a closing.

3. Changes in Property and Selling

It will no longer be necessary to deliver the housing technical data sheet or utilization authorization, for a property transaction, although these documents may be requested by financial institutions in order to provide mortgages.

4. Change of Use in Residential Fractions

The change of purpose or use of any residential fraction no longer requires authorization from the other condominium owners.

These changes come into effect on March 1st 2024, with retroactivity to January 1st 2024 in some areas.

In practical terms, the taxation rules themselves will remain unchanged. However, enrollment is now restricted to individuals who meet certain requirements established for the transitional period in 2024.

The program enables the visa holder to request the Portuguese citizenship after five years of legal residency, if the Portuguese language is learned. Some of the GV options are now excluded from the program but there are still interesting options available.