Having a child: Financial support and tax deductions

This section is organized as follows:

• Support during pregnancy
• Family allowances
• Tax deductions

After the 13th week of pregnancy, you may be entitled to an pre-natal family allowance, depending on your household income, how many children you already have and how many you are expecting. If you live alone or with children or young people only, you will receive an additional 35%.

The criteria for claiming the pre-natal family allowance are as follows:

You must apply for the allowance via the Social Security Direct portal, in person at social security offices, or at a Citizen Bureau. You will need to complete and submit the form Mod.RP5045-DGSS.

If you are prevented from working owing to medical risk, you may apply for a medical risk allowance during pregnancy, to replace lost work income.

Pregnant women, women who have recently given birth, or women who are breastfeeding, whose job involves night work or exposure to risks that may harm their health and/or that of their baby can apply for the specific risk allowance.

There is also an allowance for miscarriage, which employees may receive to replace lost work income, for 14 to 30 days in line with medical advice.

When a pregnancy ends in miscarriage, and where no leave for miscarriage exists, the employee is entitled to absence for pregnancy loss for up to 3 consecutive days. The father may also take this leave.

Find out more about support available during pregnancy.

Family allowances are granted according to household income, the age of the child and the number of siblings for which the benefit applies. Check the criteria on the Social Security Portal.

Family allowances must be applied for online, via the Social Security Direct portal, or in person at Social Security offices. You will be required to complete the application form and submit all the documents indicated on the form.

In addition to the family allowance, which is payable for children and young people until they finish compulsory education, there is support for single-parent families, large families, as well as education grants.

Parents who care for a child with a disability or chronic illness can apply for a monthly allowance for care of the child, and for the family allowance payment for children and young people with disabilities under the age of 24.

When you file your tax return, you can make deductions from the tax payable:

• EUR 600 for each child over 3 years old
• EUR 726 for each child under 3 years old
• EUR 900 for each child under 3 years old, if 2nd or subsequent dependent
• EUR 1 187.50 for each child with a disability
• EUR 1 900 of the care costs for each child in common who has a degree of disability of 90% or more
• 35% of the general family expenses for each child, up to a maximum of EUR 250
• 15% of the health and insurance costs for each child, up to a maximum of EUR 1 000
• 30% of the education and training costs for each child, up to a maximum of EUR 800. This amount may be EUR 1 000 if the cost difference relates to rental accommodation for a student living outside the family home
• 30% of the education and rehabilitation costs for each child with a disability
• 25% of the cost of insurance premiums or contributions to mutual associations for each child with a disability
• 100% of the VAT on invoices for monthly public transport passes for each child, up to a maximum of EUR 250
• 15% of property rental costs of up to EUR 1 000 over 3 years, for families transferring their permanent residence inland.

Municipal Property Tax [Imposto Municipal sobre Imóveis, IMI]

Some municipalities offer a discount on IMI to families with children. To find out how much is payable, check the list of IMI rates per municipality.

Vehicle Tax [Imposto sobre veículos, ISV]

Some families may be exempt from vehicle tax on car purchases:

At the time of purchase, families pay only 50% of the tax, provided the car is a passenger car with more than 5 seats, with a certain level of CO2 emissions, and the exemption value does not exceed EUR 7 800 of vehicle tax.