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Redemption of PPR to pay credit will be penalized again in 2025



From 2025 onwards, withdrawals from Retirement Savings Plans (PPR) to pay off a home loan will once again be penalised, after a period of exemption.


The early withdrawal of retirement savings plans (PPR) to pay off a home loan will once again be penalised in 2025, as the law that suspended this financial penalty was not extended.


The possibility of early withdrawal of retirement savings plans (but also education savings plans and retirement/education savings plans) to pay off home loan instalments without the penalties usually associated with them - such as the return of the tax benefit in the form of personal income tax - was created in 2022, in a package that included several measures to mitigate the impact of rising inflation on household income.


At the end of 2023, as part of the State Budget for 2024 (OE2024), MPs approved the PS proposal that extended this transitional rule to 2024. Thus, until the end of this year, families can partially or fully redeem their savings plans (retirement and/or education) without any penalty or limit on the amount for paying installments on credit contracts or making payments to housing cooperatives. Now, since this legislation was not extended, in 2025 there will once again be a penalty when a customer wants to redeem a PPR early, even to pay house installments to the bank. The PPR is a product that is designed for long-term savings, for retirement savings.


Read more here!


Source: Lusa and Idealista


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