Did you know that in addition to providing great protection for you and your family, life insurance has other benefits, such as tax benefits in some cases? While life insurance in Portugal is generally no longer deductible, there are some exceptions that provide tax rebates.
Who can benefit from tax benefits if they buy life insurance?
Under the law, there are three exceptions to the tax benefits for those who purchase life insurance:
The first includes people with disabilities, provided that their permanent disability is equal to or greater than 60%.
The second exception is cited. People in the so-called fast-track occupations, who are sports, mining or fishing professionals according to the Personal Income Tax Law (CIRS).
Finally, all companies can benefit from tax benefits. Those who have life insurance, a life insurance policy that, in addition to providing economic protection in the event of death, also guarantees the insured the economic stability that they will be able to enjoy during retirement.
Disability Life Insurance Tax Benefits
To reduce social inequalities and care for the quality of life of people with disabilities, the law grants them various tax benefits, including life insurance, provided they have proof of disability.
The disabled with permanent disability equal to or greater than 60% may deduct 25% of their insurance premiums from their income, but the amount of withholding will not exceed 15% of the total amount.
In addition, these people or their guardians can also deduct €1,900 from their income for each disabled taxpayer, 30% of education and rehabilitation expenses and four times the IAS (Social Support Index) for each disabled descendant. . .
Tax benefits of life insurance for people with fast careers
People whose occupations imply strong emotional or physical stress, inserted in article 27 of Decree No. 82-E/2014 (CIRS) of December 31, are entitled by law to life insurance with a 100% premium or pension. In the case of life savings insurance, the insurance does not guarantee any advance payment before the age of 55, nor does it guarantee any advance payment within the first five years of the contract.
The maximum limit of this deduction is 2,178.80 euros.
Tax Benefits of Life Insurance Savings
Your savings life insurance to guarantee a pension also benefits from tax benefits, since those who sign the contract will be able to deduct 20% of the cost in the income statement.
However, the law establishes a maximum limit for these deductions, depending on the age of the insured, which ranges from €400 for those under 35 years of age, €350 for those between 35 and 50 years of age, and €300 for those over 50. years, although they did not retire.