Most common criteria:

• Legal residence in Portugal for at least 5 years;
• Portuguese parentage or ancestry;
• Marriage or de facto union with a Portuguese citizen;
• Sephardic Jewish descent;
• Birth in Portuguese territory, under certain conditions;

Documents usually required:

• Valid identification document;
• Birth certificate;
• Proof of legal residence (if applicable);
• Criminal record;
• Declaration of wish to acquire nationality;
• Additional documents, depending on the applicable route;

Where can I submit the application?

• At the Civil Registry Office;
• Through a legal representative;
• Online (in some specific cases);

Response times:

The process can take between 6 months and 2 years, depending on the complexity of the request and the volume of pending cases

With a direct impact on the day-to-day tax obligations of businesses and professionals, these updates involve adjustments to deadlines, procedures, and declarative obligations.

What changes with these new measures?

Among the key updates approved by the Council of Ministers are:

1. Flexible VAT reporting

Businesses can now choose between monthly or quarterly VAT reporting, allowing them to align the schedule with their invoicing practices.

2. Less bureaucracy for one-off services

In specific cases, the declaration of commencement of activity is no longer required for isolated acts such as occasional service provision.

3. Extended deadline for Modelo 10 submission

The deadline for submitting Modelo 10, a declaration reporting payments made to third parties, has been extended to provide greater flexibility and ease of compliance.

What is already being implemented?

In addition to the newly approved measures, the Government has started implementing other previously announced initiatives, including:

1. Automatic submission of “zero” VAT returns;
2. Removal of annexes Q and O from the IES declaration;
3. New rules for withholding tax on payments under €25;
4. Simplified procedures for postal shipments valued under €1,000.

Why are these changes relevant?

These measures aim to reduce operational costs, eliminate administrative redundancies, and harmonise deadlines and procedures, particularly in the context of periodic declarations and auxiliary obligations.

For companies, accountants, and self-employed professionals, staying informed of these changes is essential to ensure compliance and avoid unnecessary penalties.

The Reis & Pellicano team is available to answer questions and provide guidance on the appropriate tax framework for each situation.

Who Can Benefit?

The regime is available to individuals up to the age of 35, regardless of their education level, who earn employment income (Category A) or self-employment income (Category B).

To qualify, beneficiaries must no longer be considered tax dependents and must have their tax status in order.

How to Request a Reduction in Withholding Tax

To benefit from this adjustment at source, the worker must:

• Submit a formal written request to their employer under Article 99-F of the Personal Income Tax Code (Código do IRS);
• Indicate the year in which they began earning income as a non-dependent;
• Provide supporting documentation that proves eligibility for the Young IRS scheme.

Once these steps are completed, the employer may adjust the withholding rate to reflect the applicable exemption for that year, allowing the tax benefit to be felt monthly.

Important Considerations

It’s essential that beneficiaries correctly declare the year they first started earning income, as the level of exemption varies depending on that date.

Additionally, it’s important to evaluate whether receiving the benefit in monthly pay is the most financially advantageous option, as it may result in a lower tax refund — or additional tax owed — when filing the annual tax return.

Reis & Pellicano provides legal insight to help individuals navigate evolving tax obligations with clarity and confidence.

Who is entitled to exclusive paternity leave?

All employed and self-employed workers who are biological or adoptive fathers are eligible, provided they are registered with Social Security and meet the minimum contribution requirements.

How does paternity leave work?

Paternity leave is divided into two parts:

• Mandatory period: fathers are entitled to 28 consecutive days, paid at 100% of their salary, to be taken within the first six weeks after birth.
• Optional period: an additional 7 working days may be taken, either consecutively or separately, within the first 6 weeks of the child’s life.

How much is the paternity leave allowance?

1. Notify the employer at least 5 days in advance.
2. Submit the request to Social Security, either in person or online, including the baby’s birth certificate.
3. Define the leave period according to family needs.

This leave is mandatory and essential to ensuring fathers’ rights at work and within the family.

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/young-homebuyers/ Fri, 03 Jan 2025 12:00:35 +0000 https://reispellicano.com/?p=2444 To support young people, the government has introduced a state-backed mortgage guarantee, making it easier to secure financing for purchasing a first home. In this article, we explain how this measure works and the criteria to benefit from it.

What is the State-Backed Mortgage Guarantee?

The state-backed guarantee is a measure that allows the government to assume part of the risk associated with housing loans, providing partial coverage of the mortgage amount requested by young people to buy their first home.

Who Can Benefit from This Measure?

• Young people up to 35 years old;
• Those purchasing their first primary residence;
• Individuals who meet the necessary requirements to obtain a mortgage from a financial institution.

It is important to note that the measure applies only to the amount required for purchasing the home and remains subject to individual assessments by banks or financial institutions.

How Does It Work in Practice?

1️⃣ State Guarantee: The government acts as a partial guarantor, covering a percentage of the loan value.
2️⃣ Lower Initial Deposit: With the state guarantee, banks may reduce the amount of upfront deposit required, making the loan more accessible.
3️⃣ Evaluation Criteria: Despite the state support, financial institutions will still assess the applicant’s solvency and repayment capacity.

What Are the Benefits for Young People?

• Easier Access to Mortgage Loans: The state guarantee reduces risk for banks, encouraging them to lend to young borrowers.
• Lower Deposit Requirements: Young people can move forward with purchasing a home with less savings.
• First Home Ownership: It supports young people in acquiring their first primary residence at a key stage in life.

If you need legal advice regarding this program or support with housing credit processes, the Reis & Pellicano team is here to help. Contact us!

Who is entitled to the Christmas bonus?

In addition to employees, including those on parental leave or sick leave, this right also applies to pensioners, provided they meet the legal criteria.

When must it be paid?

The bonus must be paid by December 15. In some cases, it can be paid throughout the year in installments (twelfths). For public sector employees and pensioners, payment dates may vary.

How is it calculated?

The amount generally corresponds to one month of gross base salary, including seniority payments. If the employment contract starts or ends during the year, the amount will be proportional to the time worked.

Consequences of non-compliance

If the employer fails to pay the bonus within the legal deadline, they may face penalties as stipulated in labor law.

If you have questions or need legal assistance to ensure compliance with your obligations, contact the team at Reis & Pellicano. We are here to help.

What has changed with the new rules?

The new measures centralize decisions on the registration of local accommodation, reducing the power that condominium once held to block or contest the operation of LA units in their buildings. Under previous laws, condominium could, by a qualified majority, influence or halt LA operations if they felt it negatively impacted their quality of life. With the introduction of the ‘Mais Habitação’ program, this influence has been significantly reduced, further strengthening property owners’ rights

The main changes include:

• Reduced Influence of Condominium: condominium now have less ability to restrict local accommodation activities in residential areas. Previously, the condominium could block LA operations by a qualified majority if they believed it disrupted their living environment. The new rules shift the decision-making power, limiting the ability of the condominium to contest or block new LA registrations;
• Centralized Decision-Making: the new legislation seeks to standardize LA registration criteria, limiting the ability of condominiums to impose restrictions on operations, except in extreme cases.”The responsibility for approving and monitoring new registrations now lies with relevant authorities;
• Impact on High-Density Areas: while existing property owners will continue to operate, it will become more difficult to register new LA units in high-density urban and tourist areas, such as Lisbon and Porto, where real estate pressures and tourism demand are highest.

What Are the Rights of Property Owners?

Despite the reduction in the influence of the condominium, property owners operating under the LA regime retain key rights:

• Protection of Existing Registrations: property owners already operating within the LA regime before the new rules take effect will have their existing registrations protected, as long as they comply with new regulatory requirements;
• Support in High-Pressure Tourist Areas: although new LA registrations will face stricter rules in certain areas, current operators are assured of continued operation, and the government may offer incentives or ease regulations for these areas;
• Increased Responsibility: starting in 2024, property owners are required to ensure their properties comply with all safety regulations and that guests do not disturb the peace of other residents.

Recommendations from Reis & Pellicano

Given the complexity of these new regulations, it is crucial for both property owners and condominiums to be well-informed about their rights and obligations. At Reis & Pellicano, our team of lawyers is ready to provide expert legal advice on the changes in local accommodation regulations and their implications. If you need help navigating these new laws, contact us for personalized legal support.

Key Points of the New Legislation:

1. Mandatory Work Visa: Immigrants must now obtain a specific work visa from Portuguese consulates in their countries of origin before entering Portugal for employment purposes. This change aims to streamline the immigration process and address the backlog of residence permit applications.
2. Immediate Effect: The new rules came into effect immediately following their publication in the Diário da República, with President Marcelo Rebelo de Sousa emphasizing the urgency of resolving the large number of pending residence applications.
3. Transitional Provisions: Immigrants who have already submitted their “Expression of Interest” will not be affected by this change. Their applications will continue to be processed by the Agency for Asylum, Migration, and Integration Fund (AMIF).
4. Reinforcement of Consular Networks: The government plans to strengthen consular services with an additional 45 staff members, focusing on CPLP countries and other key regions. This includes creating fast-track lanes for preferred immigration profiles, such as CPLP nationals, young students, and skilled workers.
5. Focus on CPLP and Specific Profiles: The legislation maintains a preference for immigrants from CPLP countries, young individuals for family reunification, students, and qualified professionals. These groups will benefit from expedited procedures and specific visa categories.
6. Educational Initiatives: The government aims to attract more international students by extending visas to allow job searches after graduation and increasing scholarships for CPLP students. Portuguese language teaching for foreigners will also be expanded to facilitate integration.

Reis & Pellicano’s Recommendations

Navigating these changes can be challenging. Our legal team at Reis & Pellicano is here to provide comprehensive guidance on the new immigration laws and help you understand your rights and obligations. Contact us for advice and support in your immigration process.

What does it involve?

This initiative, informally known as the “solidarity golden visa,” aims not only to attract foreign investments but also to contribute to the integration and support of immigrants in Portugal. An investment of €250,000 grants the right to a temporary residence permit for investment activities, with exemption from the need for a residence visa to enter national territory. This amount will be invested in “equipment and infrastructure to support the reception and integration of immigrants in vulnerable situations,” as presented in the Action Plan for Migration.

Key Features:

1. Temporary Residence Permit
   This visa allows investors to obtain a temporary residence permit in Portugal, facilitating entry and stay in the country without the need for a residence visa.
2. Investment Requirement
   Applicants must invest €250,000 in the Asylum, Migration, and Integration Fund (AMIF), aimed at supporting social projects focused on accommodation, integration, and assistance to vulnerable immigrants.
3. Eligibility and Application
   Available to citizens of third countries, this visa focuses on financial contributions to social causes rather than traditional investments such as real estate. Additional details on the application procedures will be presented to Parliament by the end of the year.
4. No Need to Purchase Assets
   Unlike traditional Golden Visas, this visa does not require the purchase of real estate or other assets, being exclusively directed towards social investments.

Recommendations from Reis & Pellicano
Navigating these changes can be complex. At Reis & Pellicano, our legal team is here to provide comprehensive guidance on the Residence Permit for Social Investment and other migration issues. We can help you understand the new regulations, prepare your application, and ensure compliance with all legal requirements.