The payment will be made by bank transfer linked to the IBAN
provided to the tax authorities. The tax (AT) portal has created a shortcut where you can quickly confirm your IBAN and, if necessary, register and update
your bank account number. If the IBAN is “confirmed” then it will be valid to
receive the payment or you can choose to change the number.
The measure is included in the support package for families
announced by the Government at the beginning of September, valued at 2.4
billion euros. In question is a payment of 125 euros for eligible citizens,
regardless of their family situation, with a gross monthly income of up to
2,700 euros, which corresponds to 37,800 euros per year.
In practice, this support will apply "to all
those who are taxpayers in the IRS, to those who, depending on their income,
are exempt from paying IRS or submitting an IRS declaration", as well as
to beneficiaries of minimum social benefits, such as unemployment benefit and
sickness benefit.
At the same time, the Government has also provided an
extraordinary support of 50 euros for each dependent, up to the age of 24 (no
age limit for dependents with disabilities). This means in practice that in the
case of a couple with two children and where both have an individual income of
up to 2,700 euros per month, they will now receive an extra payment of 350
euros.
Payment is made automatically, in one go and made by bank
transfer through the Tax Authority (AT) or Social Security (in the case of
those who receive minimum social benefits). Payments will be made at a rate of
500,000 payments per day, starting this Thursday, and Fernando Medina estimates
that the processing of the measure should be completed in 10 days.
I read your article about the €125 payment but are you aware that both British people and Portuguese emigrants who worked in the UK , retired in Portugal and receive pensions from the UK which are declared in the IRS in Portugal (their pensions are free of taxes in the UK since their fiscal country is Portugal) are not entitled to the benefit of the €125?
I checked the Portal das Finanças and in my case, even with an annual income within their limit, I am not allowed to receive the €125 benefit and the reason is because I receive a pension from abroad. If you read their leaflet in the Portal das Finanças "Para mais esclarecimentos consulte AQUI o Folheto da AT sobre o Apoio Extraordinário Atribuído pela AT e respetiva legislação." its quite clear on page 6 that a Contribuinte com rendimentos de pensões obtidos no estrangeiro is not entitled to receive €125 payment - os beneficiários de pensões incluídos neste apoio não podem ter pensões pagas por entidades estrangeiras -. There must be hundreds of Portuguese emigrants who worked in the UK and retired in Portugal or British citizens who retired in Portugal and have Portugal has their fiscal country therefore declaring their pensions from abroad in the IRS and paying taxes on the pension received. Those people are not entitled to receive the €125 payment from the Portuguese state even though their pensions were taxed in Portugal.
It's a joy to read your newsletter. Many thanks. M. Lee
By M. Lee from Lisbon on 21 Oct 2022, 12:17
I am a Portuguese citizen that took a lot of tumbles in life and now I don't have any income but have always fulfilled my obligations to the AT.
Since I am long term unemployed citizen that nobody wants and do not have the economical means to be self-sufficient my parents are the ones helping me out.
So, yes, that amount of €125 would be very helpful for me and many others like me.
The don't exist to them!
Sad but true!
By A. L. S. O. R. from Lisbon on 24 Oct 2022, 09:09