European PPR Investments: A New Possibility to Optimise Your IRS

The European PPR investments represent a new opportunity to optimise the completion of the IRS tax return. Recently, the government announced the inclusion of a specific field in Modelo 37 for Pan-European Retirement Savings Plans (PEPP), allowing Portuguese taxpayers to declare the amounts invested in this type of investment. This change, published in December 2024, promises to boost take-up of a product that combines flexibility, security and tax benefits. Read more here.

What are PEPP and why are they important?

Pan-European Retirement Savings Plans, known as PEPP, are a European Union initiative to facilitate citizens' access to a complementary retirement savings system. Unlike traditional PPRs, PEPPs offer portability between European countries, making them an ideal solution for those who live or work in different member states.

These plans have standardised features, which means that investors can count on clear and transparent conditions, regardless of the country in which they choose to contribute. In addition, PEPPs were created to complement existing pension systems, offering greater financial stability in retirement.

Tax benefits and IRS declarations

With the update of Modelo 37, the amounts invested in PEPP will now be declared in the IRS, just like traditional PPRs. This inclusion not only facilitates the filing process, but also offers the possibility of taking advantage of tax deductions that can significantly reduce the tax burden.

Although they have been available for two years, PEPPs have yet to gain much popularity in Portugal. However, this new measure has the potential to attract more investors, making it an interesting opportunity for those looking to diversify their retirement savings.

Count on Serro & Andrade to simplify the process

At Serro & AndradeWe believe that good financial planning is the key to success. We are ready to help you understand the details of European PPR investmentsThis will help you maximise your tax benefits and ensure that your tax return is completed correctly and efficiently.

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