Key points from Portugal’s State Budget 2020

  • Lusa
  • 1 April 2020

The Portuguese State Budget comes into force on Wednesday with some measures and legislative changes.

Portugal’s 2020 State Budget comes into force on Wednesday following its promulgation on March 23th by the president, Marcelo Rebelo de Sousa, and publication in official state journal ‘Diário da República’ on Tuesday.

The document contains some measures and legislative changes that come into force immediately, among which we highlight:

10% increase in unemployment benefit for couples with children or single-parent families

The budget increases unemployment benefit by 10% for each member of an unemployed couple with children.

The same increase is given to single-parent families in the same circumstance.

Free access to museums and national monuments for students in the area

Students of professional and higher education in the areas of historical-artistic and tourism, heritage and cultural management will have free access to museums and national monuments, upon presentation of proof of attending the courses.

Reinforcement of the accommodation supplement for higher education students 

The support for student housing without access to university residence has a monthly value equal to the charge paid for housing and proven by a receipt, up to the limit of 50% of the index of social support, from January 2020.

In the next school year, the supplement will see its value increased according to the median per square meter of the new rental contracts, disclosed by Statistics Portugal, for those who live in regions where prices are higher than the national value.

Monthly grants for maintenance of scholarships increase 1% 

The value is updated by 1% based on the forecast of the consumer price index (CPI – annual average) for 2020, without prejudice of other regular or extraordinary updates occurring.

Free adrenaline pen 

The self-injecting adrenaline drug, commonly called adrenaline pen, is now fully reimbursed upon medical prescription.

End of primary health care co-payments

With the entry into force of this law, the government shall waive the collection of co-payments for primary health care consultations, as read in the law of the State Budget for 2020.

The same document details that as of 1 September, complementary diagnostic and therapeutic examinations to primary care, performed in public health services, will also be exempt from a fee.

From 2021, the exemption is extended to all complementary diagnostic and therapeutic examinations in the same scope.

Natural gas social tariff costs

The costs of the social tariff for natural gas are borne by the transport and marketing companies in proportion to the volume marketed in the previous year.

Portuguese sign language interpreters exempt from VAT

Services rendered by a Portuguese sign language interpreter are now exempt from VAT.

VAT exemption for self-employed with turnover up to €12.500

The self-employed with a turnover not exceeding €12,500 in the previous year are exempt from the payment of VAT, according to the State Budget for 2020, which consists of an increase of €2,500 compared to the previous limit of €10,000.

IRS and IRC exemption for those participating in the accessible rental

The State Budget Law states that “Real estate income obtained under municipal programmes for the provision of affordable housing will be exempt from IRS and IRC taxation for the duration of the respective contracts.”

Exempt income is included, for IRS purposes, for a rate to be determined for the remaining income when the taxpayer opts for the inclusion of property income.

Requirement to report the death of pets

The owner or his representative must report the death or disappearance of the pet to SIAC [Companion Animal Information System], under penalty of presumption of abandonment […], without prejudice to any criminal liability which may be established.

The statute details that they are exempt from the payment of a fee to be determined by the respective parish council guide dogs, guard dogs of state establishments, administrative bodies, charitable and public utility bodies, dogs collected in zoophilic institutions or municipal kennels.

“Owners of dogs in a situation of economic insufficiency, as well as owners who have collected the dogs in official animal collection centres,” are also exempt from the payment of a fee.

According to the SIAC, for animals (dogs, cats and ferrets) born after October 25th 2019, the identification of pets, by their marking and registration in the SIAC, must be carried out up to 120 days (4 months) after their birth.

For animals born before October 25th 2019, for dogs born before July 1st 2008 without transponder/microchip, the deadline is 1 year, for cats and ferrets before October 25th 2019 without transponder/microchip, the deadline is 3 years, and for animals (dogs, cats and ferrets) with transponder/microchip but without SIAC registration, the deadline is 1 year.