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Private Health Insurance can be a better option for Expats

Jun 15, 2022

Portugal has a good public healthcare system. However, many Portuguese and Expats choose to sign up for private health insurance as well. Health Insurance in Portugal is affordable and averages somewhere between €40 and €100 per month, depending on multiple factors like age and pre-existing conditions.

To visit a private Doctor in Portugal, you would typically pay around €50 to €100 per appointment. With insurance you can pay only a fraction of that. The benefit of using a private system is that you will see a doctor faster and in turn you will get referred to a specialist more rapidly. Private hospitals can be more modern and more importantly for Expats is the language factor: most doctors, nurses and attending personnel speak English (and other languages). In some private hospital chains, you can even select the Doctor based on the languages they speak.

If you purchase insurance, you will most likely use private hospitals for the majority of your needs, but it is important to realise that you will probably still use the public system from time to time. The private system is much smaller than the public system and if you need intensive treatment, you will possibly be referred to a doctor on the public system. Therefore, if you plan to stay in Portugal for a long period of time, it is always a smart decision to apply to the country’s public health care system (Sistema Nacional de Saúde). To enjoy your right to health public service, you must first register with the local council (Junta de Freguesia), where you must also ask for the proof of address, which you will need for your registration with the local healthcare centre (Centro de Saúde). You should bring your residency card (Cartão de Residência) and your visa as well.

A few things to consider when deciding which insurance product is the right one for you:

International cover: if you plan to travel or spend a lot of time outside of Portugal, or plan to move within the next few years, you may want to consider a provider that has an international approach.
Local hospitals and clinics – it would definitely be a good idea to check which insurances are accepted at the hospitals, dentists and other healthcare services you expect to visit.
Age restrictions: many insurers will have age restrictions and will not insure those over 70. Therefore, you will need to start your policy before then or it would be advisable to search for an insurance that will.
Pre-existing conditions: A health insurer cannot deny you coverage or raise rates for plans if you have a medical condition at the time of enrolment. However, there may be able to find health plans that are a better fit for you than others if you have a chronic, or pre-existing medical condition.
Dental: Dental care is not usually covered on the public healthcare system and a visit to a dentist can be costly in Portugal. Health Insurance can significantly cut down the expenses to small co-pay.
Pregnancy: pre-natal and birth care are free using the public system but many residents choose private hospitals where there is more privacy and they are likely to be more looked after.

Choosing and purchasing health insurance can be overwhelming, particularly if it is something you haven’t done before, and it can be difficult to know where to start. Banks in Portugal usually offer a discounted health insurance product and many expats even choose their bank based on this factor. Whilst this sounds like the easiest solution, it would be a good idea to browse around and see which other options you have available. A broker who can access the best options based on your needs might be useful or you can request individual quotes yourself.

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Benefits of Personal Income Tax for Young Professionals

by Diogo Pedro • 07 May, 2024

Over the past four years, young workers who earned their first income as employees or self-employed individuals have been eligible for a tax benefit in their personal income tax, known as 'IRS Jovem”. This benefit is intended to offer young workers the possibility of minimising their tax obligations, allowing for a higher amount of disposable income. To enjoy this benefit, taxpayers are required to comply with the following requirements: Have a complete course of level 4 or higher studies on the National Qualifications Framework (high school level acquired through double certification and aimed at pursuing higher education such as a bachelor’s degree, a master’s degree, or a PhD). Age between 18 and 26 years old. Considered independent, i.e., no longer included in the parent’s household for tax purposes. The specified age limit includes individuals up to 26 years old, inclusive. However, this limit is extended to 30 years old for taxpayers who have completed a degree at level 8 of the National Qualifications Framework (PhD). In 2024, this tax benefit has been improved, with increased tax exemption rates and an expanded range of applications over time. In this sense, upon completing the course of studies required, the individual may qualify for an exemption from personal income taxes for a duration of 5 years, as explained in the following details: 100% of the income in the first year with a cap of 40 times the Social Support Index – “IAS” value (€20.370,40). 75% of the income in the second year with a cap of 30 times the IAS value (€15.277,80). 50% of the income in the third and fourth year with a cap of 20 times the IAS value (€10.185,20). 25% of the income in the fifth year with a cap of 10 times the IAS value (5€.092,60). Moreover, the exemption can only be used once by the same taxpayer and should be requested when preparing and filing the personal income tax return. It is also important to acknowledge that this benefit has implications for withholding tax, allowing adjustments to the value subject to withholding tax. However, be aware that, while the withholding tax rate applied corresponds to the total amount of income earned, it is only applicable to the portion that is not exempt. If you have any questions or need assistance with this or related matters, feel free to reach out . We would be delighted to help you.

Being an urgent process, this legal action has priority over legal actions not deemed to be urgent.

My application has been pending for months with the Immigration Office - AIMA. What can be done?

by Sara Ferreira • 29 Apr, 2024

It is known to the general public that the Portuguese Immigration Office (AIMA) has not been able to timely approve residency authorisation requests within the legal timeframe defined to do so, thus resulting in residency applicants having their applications on hold for months, in some cases even years. One way to tackle this inaction from the Immigration Office is to file a legal action, namely the Subpoena for rights, freedoms and guarantees of the citizens.