Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
In Portugal, the gross enrolment ratio for tertiary education for both sexes was 75.56% in 2022 (UIS). In 2021, initial government funding per tertiary student amounted to 21.39% of GDP per capita, while initial household funding per tertiary student represented 6.13% of GDP per capita.
Tuition-free status
Public tertiary education is not tuition-free. However, the Constitution establishes that access to universities and other higher education institutions shall guarantee equal opportunities and the democratisation of the education system. Tuition fees are intended to cover part of the costs and investments and are charged to all students. However, a maximum amount is legally established for undergraduate studies (currently 697 euros).
Governance
The Ministry of Education, Science and Innovation is responsible for financing higher education.
1. Education resources to subnational governments
Law 37/2003, which establishes the basis for financing higher education, does not establish funding mechanisms for transferring resources from the central government to local governments for public higher education.
Ordinance 101/2024/1 establishes the formula for calculating the reference budget for higher education institutions. The formula is primarily based on the number of enrolled students, adjusted according to their fields of study. However, it does not take into account equity-related factors, such as the implementation of quota systems or targeted funding allocations.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
There is no specific funding for private universities when no public university is available.
Allocation and equity
The Higher Education, Science and Innovation Budget Programme is financed mainly through transfers from the State Budget (56.4%), supplemented by the sector’s own revenue. In 2025, higher education institutions have a total budget of 3,226 million euros, of which 1,498 million euros (46%) come from tax revenue. The main sources of own revenue (43.6%) include tuition fees paid by students, European funds from co-financed projects, donations, and services provided. Under current legislation, public higher education institutions (HEIs) enjoy administrative, financial, and patrimonial autonomy from the State.
Law 37/2003 establishes that, within its remit concerning non-public higher education institutions, the State may, by contract, provide support for student social assistance, teacher training, investment, and research.
Public higher education institutions do not receive targeted funding aimed at promoting equity for specific groups.
3. Education resources to students
Admission for vulnerable groups
Since 2023, a specific admission criterion has been established for students who benefited from school social action during high school. The Priority Quota for Candidates Benefiting from School Social Action reserves 2% of available places, or a minimum of two places, in the first phase of admissions under the general admission regime (CTeSP (local competition) and other special admission regimes are not covered).
The quota is voluntary; institutions may adopt it, and the majority implement it across all courses. Any unfilled allocated places revert to the general pool.
Scholarships, grants and loans for vulnerable groups
Students from low-income backgrounds are automatically assigned scholarships awarded by the General Directorate of Higher Education (DGES) (subject to the subsequent submission of documentation), under the Ministry of Education, Science and Innovation. With the introduction of automatic grants, low-income students now know before applying for higher education that the continuity of their secondary education scholarships is ensured.
Order no. 7253/2024, Article 48 introduced updates to the framework governing automatic grants. Other low-income students who exceed the threshold in secondary education but qualify for it in higher education must still apply, as their grants are not automatic. However, Level-A students currently benefit from both automatic scholarship allocation and quota-based access.
Eligibility is based on the student’s or family’s annual income. These scholarships cover tuition fees and may include additional supplements. The regulations governing their allocation were updated through Order 7253/2024.
4. Support for students’ living costs
Transportation
Students who study away from their usual place of residence may be eligible for a housing supplement to help cover rental costs, depending on specific eligibility criteria.
Accommodation
Students residing in the Autonomous Regions of the Azores or Madeira who are enrolled in higher education institutions on the mainland may receive an annual transport benefit. This support covers the cost of one return air or sea ticket per academic year between their place of study and their habitual residence.
Textbooks
No information was found.
This profile was reviewed by Pedro Luis Silva, Professor.
