What is an IPSS and how does the subsidy system work?
IPSS (Instituições Particulares de Solidariedade Social) are non-profit private institutions — associations, foundations, Misericórdias or cooperatives — that provide social services with state support. In the context of childcare, IPSS organisations enter into cooperation agreements with Social Security (Segurança Social) that allow them to offer income-based monthly fees instead of open-market pricing.
The system is built on a straightforward principle: each family pays a percentage of their monthly net per-capita income. Lower-income families pay less; higher earners pay more, but always within a ceiling defined by the agreement.
How is the monthly fee calculated?
The basic formula is:
- Add up the total monthly net income of all household members (salaries, pensions, rental income, etc.).
- Divide by the number of household members (including the child).
- Apply the percentage for the relevant tier (between 0.5% and 5%).
Practical example: a couple with no other dependents, a combined net monthly income of €2,200 and one child. Per-capita income = €2,200 ÷ 3 = €733. Applying 2% (a mid-range tier), the monthly fee would be approximately €14.66 — rounded according to Social Security rules.
In practice, IPSS monthly fees for most families in Portugal range between €25 and €350 per month.
Who qualifies for the subsidy?
Any child under 3 attending an IPSS nursery with a cooperation agreement is entitled to the subsidy, provided:
- The household is legally established in Portugal (fiscal and habitual residence).
- The required documents are submitted to the nursery.
- The child is not simultaneously receiving another state-funded childcare placement.
Note: the most vulnerable households may qualify for full exemption from any monthly fee, as defined by Normative Dispatch no. 75/92 and subsequent legislation.
How to apply: step by step
- Find an IPSS nursery with places — Use Skolvi to identify IPSS nurseries in your area and contact them directly to check availability.
- Submit your application to the IPSS — Most IPSS nurseries maintain a waiting list. Submit your application form with supporting documents as early as possible.
- Gather the required documents — See the full list below.
- The IPSS calculates your fee — Based on the documents you provide, the institution calculates your income-based contribution and informs you of the monthly amount.
- Annual review — The subsidy is reassessed each year. The IPSS will request updated documents, typically between September and October.
Required documents
The documents most commonly required by IPSS nurseries to calculate your contribution are:
- Citizen Card (Cartão de Cidadão) or ID document of all household members
- Tax Identification Number (NIF) of all household members
- Most recent tax return (IRS declaration) or tax assessment notice (nota de liquidação), or exemption certificate if applicable
- Last 3 salary slips (or employer declaration)
- Bank statements for the last 3 months
- Proof of address (utility bill — water, electricity or telecoms)
- Child's identification document (Citizen Card or birth registration)
- Child's up-to-date vaccination booklet (boletim de vacinas)
- If applicable: divorce or separation certificate, maintenance order, documents relating to pensions or social benefits
Timeframes and waiting lists
This is the most critical issue for families: IPSS waiting lists in major cities can stretch 12 to 24 months. In the Lisbon and Porto metropolitan areas it is common for families to register while still pregnant.
The ideal moment to join an IPSS waiting list is as soon as you know you will need a place — ideally before six months of pregnancy. For a place needed from September, application periods typically open between February and April of the same year.
If the IPSS has no immediate vacancy, keep a copy of your waiting list registration — it may be needed to support a request for alternative government support if an IPSS place cannot be found.
What if there's no IPSS place available?
If you cannot secure an IPSS place, here are your main alternatives:
- Private nurseries with partial agreements: some private nurseries hold partial agreements with Social Security and offer income-based fees for a limited number of places.
- Cheque-creche: a state voucher that can be used at private nurseries without a Social Security agreement. Check eligibility criteria on the Segurança Social Direta portal.
- Municipal support schemes: some municipalities have supplementary support programmes for families who cannot access an IPSS place. Contact your local Câmara Municipal.
Tips for maximising your chances
- Register on multiple IPSS waiting lists simultaneously — there is no penalty for being on several lists at once.
- Call the IPSS directly to get a realistic sense of how long the waiting list is before you register.
- Use Skolvi to identify subsidised IPSS nurseries near you and compare your options at a glance.
- Keep your documents up to date — an incomplete application can delay the process significantly.
- If your financial situation changes during the year (redundancy, pay cut, new dependent), you can request a reassessment of your contribution at any time.