PPR — Plano Poupança Reforma

PPR (Plano Poupança Reforma) is a Portuguese private pension savings product. Contributions to PPR accounts generate a direct tax credit on the IRS return: 20% of contributions, capped at €400/year for taxpayers over 50, €350/year for ages 35–50, and €400/year for under 35 (the higher cap reflects the longer investment horizon). Withdrawals are taxed at only 8% if made after age 60 with at least 5 years of contributions — much lower than the 28% that applies to other investment income. The PPR credit is one of the few remaining significant IRS deductions available to IFICI holders (who generally lose access to most standard deductions). Married couples effectively double the caps by each making PPR contributions.