How to read it
The model tracks each annual contribution separately. It only treats capital as available for instalments after five years. In parallel, it calculates the result of applying the same annual own contribution as a mortgage overpayment.
🇵🇹 Portugal PPR + Mortgage strategy
PPR instalments vs. mortgage overpayment
Compare annual PPR contributions, Portuguese IRS relief and using a mature PPR for owner-occupied mortgage instalments with capital overpayments.
Strategy read-out
Annual age-based relief cap
€350
Estimated IRS relief over horizon
€5,250
Reference monthly payment
€711
PPR balance at horizon end
€9,161
Instalments PPR can support
€27,093
Interest saved by overpayment
€6,398
Net-position comparison
PPR + instalments
-€37,411
Annual overpayment
-€41,018
PPR scenario is ahead under these assumptions: €3,606
First year with eligible capital: 6.º years
PPR and mortgage-balance path
PPR maturity schedule
The model tracks each annual contribution separately. It only treats capital as available for instalments after five years. In parallel, it calculates the result of applying the same annual own contribution as a mortgage overpayment.
| # | Annual own PPR contribution | Estimated IRS relief over horizon | Mature capital | Instalments PPR can support |
|---|---|---|---|---|
| 1.º | €1,750 | €350 | €0 | €0 |
| 2.º | €2,100 | €350 | €0 | €0 |
| 3.º | €2,100 | €350 | €0 | €0 |
| 4.º | €2,100 | €350 | €0 | €0 |
| 5.º | €2,100 | €350 | €2,078 | €0 |
| 6.º | €2,100 | €350 | €0 | €4,645 |
| 7.º | €2,100 | €350 | €0 | €2,494 |
| 8.º | €2,100 | €350 | €0 | €2,494 |
| 9.º | €2,100 | €350 | €0 | €2,494 |
| 10.º | €2,100 | €350 | €0 | €2,494 |
| 11.º | €2,100 | €350 | €0 | €2,494 |
| 12.º | €2,100 | €350 | €0 | €2,494 |
| 13.º | €2,100 | €350 | €0 | €2,494 |
| 14.º | €2,100 | €350 | €0 | €2,494 |
| 15.º | €2,100 | €350 | €0 | €2,494 |
Rules that change the outcome
- • The route applies to mortgage-backed owner-occupied permanent residence in Portugal.
- • Each contribution used this way normally needs at least five years of maturity.
- • Withdrawal pays due or future instalments; it is not a free capital overpayment route.
- • Tax relief is not a guaranteed PPR return: it depends on an eligible subscription and sufficient IRS liability.
Educational simulation. Confirm contribution dates, PPR contract terms, lender process and tax treatment before requesting a withdrawal.
Why an IRS refund is only a funding source
You may use an IRS refund to make the following year's PPR contribution, but the refund itself is neither mandatory nor a withdrawal right. The key variables are the eligible contribution, available tax relief and legal maturity of each tranche.
Read Decree-Law 158/2002 in the Diário da RepúblicaFrequently asked questions
The route applies to mortgage-backed owner-occupied permanent residence in Portugal.
Each contribution used this way normally needs at least five years of maturity.
Withdrawal pays due or future instalments; it is not a free capital overpayment route.
The model tracks each annual contribution separately. It only treats capital as available for instalments after five years. In parallel, it calculates the result of applying the same annual own contribution as a mortgage overpayment.
Tax relief is not a guaranteed PPR return: it depends on an eligible subscription and sufficient IRS liability.
Educational simulation. Confirm contribution dates, PPR contract terms, lender process and tax treatment before requesting a withdrawal.
Why an IRS refund is only a funding source
You may use an IRS refund to make the following year's PPR contribution, but the refund itself is neither mandatory nor a withdrawal right. The key variables are the eligible contribution, available tax relief and legal maturity of each tranche.