Good news for thousands of cancer patients in Portugal who saw their disability rating reviewed downward: the Portuguese Tax Authority (AT) will finally comply with the law and automatically recognize the right to IRS tax benefits — without forcing patients to go to court.
What was happening?
Until 2022, taxpayers with cancer and at least 60% disability kept their tax benefits, even if that rating was later reviewed downward.
From then on, the Tax Authority only recognized this right for those who went to court, forcing many people — already weakened by the disease — into long, costly and exhausting judicial proceedings.
What changed?
Two important legal milestones forced the Tax Authority to change its position:
- ⚖️ The Supreme Administrative Court ruled in favor of several taxpayers last year.
- ⚖️ The Constitutional Court confirmed this year that cancer patients with disability ratings reviewed below 60% are entitled to the same benefits.
On 17 April, the Tax Authority issued an official letter guaranteeing that cancer patients whose 60% disability was reduced to 51% retain the right to the IRS benefit.
And the best part: it is retroactive
The decision applies retroactively to January 2024. Bloco de Esquerda MP Fabien Figueiredo, who brought the case to the Ministry of Finance, made a clear appeal:
"We urge all people in these circumstances to request a review with the Tax Authority."
Important legal context
The Law no. 1/2024 created a special regime for newly diagnosed cancer patients, automatically guaranteeing a minimum disability of 60% for five years, issued directly by the hospital where the diagnosis is made.
This framework allows these taxpayers to access the tax benefits provided for in the IRS Code without having to go through the traditional multipurpose assessment processes, which are slow and bureaucratic.
What should affected taxpayers do?
If you are in this situation — diagnosed with cancer, with a certified disability of 60% or more that was later reviewed downward — you should request a review of your IRS assessment with the Tax Authority.
If in doubt, we strongly recommend that you consult a certified accountant to ensure you submit the request correctly and recover all amounts you are entitled to since January 2024.
At Grupo Your, we support clients in complex tax situations like this. If you need help, talk to us.
