Interest Rate Subsidy in Portugal: Complete 2025 Guide

With the sharp rise in Euribor, the Portuguese government introduced the Interest Rate Subsidy (Bonificação de Juros) to help families cope with rising mortgage payments.

What is it?

Temporary financial support from the State covering a portion of the interest increase when Euribor exceeds a certain threshold.

Eligibility Criteria (2025)

You must meet all the following:

1. Income: Annual income up to the 6th IRS tax bracket (approx. €38,632).
2. Loan Type: Permanent residence (HPP) only, with variable or mixed rates.
3. Effort Rate: Monthly payment must exceed 35% of net income.
4. Loan Amount: Outstanding capital under €250,000.
5. Assets: Financial assets under 62 IAS (approx. €31,000).

How much can you save?

The subsidy covers 50% or 75% of the Euribor increase above 3%.

• Maximum annual support is approx €800.

How to Apply

It is not automatic. You must submit a request directly to your bank. They have 10 working days to verify and apply the discount.