Health insurance in Portuguese IRS: is the €1,000 limit just for premiums?

One health-expense credit covers different kinds of spending

Article 78-C sets a basic credit of 15% of eligible health spending, capped at €1,000 overall. Premiums have no separate €1,000 insurance allowance. Paragraph 1(b) covers policies exclusively insuring health risks for the taxpayer or dependants; third-party payments require evidence that they were taxed as the taxpayer's income.

Sources: Portuguese Tax Authority — Personal Income Tax Code, Article 78-C(1) and (6); wording checked on 30 October 2026 ↗

A fictional calculation separates Sofia's figures

To understand the distinction, Sofia tries a simplified exercise: she assumes €600 of eligible premiums and €400 of other eligible health spending, already net of insurer contributions. The base in this exercise is €1,000. Applying 15% gives a €150 tax credit before her actual IRS assessment. It does not produce a €1,000 credit or ensure a €150 refund.

These amounts are invented for the calculation. They are neither market prices nor Sofia's actual tax position. Clara draws three boxes in her notebook: money paid from the budget; amounts that may enter the calculation; and the final assessment. She keeps them separate so an estimate does not become a promise of available cash.

Sources: Portuguese Tax Authority — Personal Income Tax Code, PDF updated by Law 26/2026 of 3 June; Articles 78 and 78-C, pp. 93–98; checked on 30 October 2026 ↗

File the expense and the insurer's reimbursement together

Under Article 78-C(6), the part of an expense reimbursed by the insurer is excluded from this credit. An invoice alone therefore does not complete Sofia's records: she attaches the reimbursement statement.

Without sending clinical documents to a group chat, Sofia creates a line for each record: year, relevant person, payment and identified reimbursement. If the insurer's payment differs from what she expected, she flags the difference for clarification. She does not edit the original document or enter the same amount twice.

Sources: Portuguese Tax Authority — Personal Income Tax Code, Article 78-C(1) and (6); wording checked on 30 October 2026 ↗

A household cap cannot simply be copied to each return

Article 78 adds assessment rules and a combined limit on deductions. For separate taxation, paragraph 14 halves household-based caps and specifies expense allocation. The outcome also depends on the tax assessed; this exercise does not calculate an individual refund.

Clara keeps the tax-filing choice outside the insurance comparison sheet. Sofia saves a question for the Tax Authority or a qualified professional: which amounts and limits apply to her return and the relevant year? She does not choose joint or separate taxation from this single expense.

Sources: Portuguese Tax Authority — Personal Income Tax Code, PDF updated by Law 26/2026 of 3 June; Articles 78 and 78-C, pp. 93–98; checked on 30 October 2026 ↗

Compare protection before assuming a tax saving

For the budget supporting her two children, Sofia needs to know what she must pay during the year. She therefore compares premiums and use-related charges before subtracting a tax advantage she has not confirmed. An IRS reference by itself explains neither the network nor waiting periods or policy limits.

To compare health cover, request a quotation from RMACHADO and bring your family's priorities. The initial request does not require public invoices or clinical details. RMACHADO handles the insurance component; checking a tax return and assessing tax require their own review of the individual circumstances.