How to file your IRS tax return in Portugal

What it is

The IRS (Imposto sobre o Rendimento das Pessoas Singulares) is Portugal's personal income tax. As a tax resident, you declare your income from anywhere in the world each year, for the year before, between 1 April and 30 June, on the Portal das Finanças.

Are you tax resident?

You're tax resident in Portugal if you:

• spend more than 183 days here in any 12-month period that starts or ends in the year, or
• have a home here that shows you mean to keep it as your habitual residence.

In your arrival year, you're usually resident only from the day you arrive (residência parcial): income from before that isn't taxed in Portugal.

Do you have to file?

Most residents with income must file, including employees, pensioners (also with foreign pensions) and the self-employed. Some people with only small amounts of certain incomes don't have to. Many employees and pensioners can use IRS Automático, a pre-filled return you just confirm.

Before you start

You'll need:

• Your NIF and Portal das Finanças password (or the Digital Mobile Key).
• Your tax address updated to Portugal: see the NIF guide.
• Statements of your income, including foreign income and tax paid abroad.
• Your invoices with your NIF (health, education, housing) for deductions: most are already on the Portal.

Steps

1. Check your invoices on the Portal das Finanças (e-Fatura) by the deadline set each February.
2. Between 1 April and 30 June, sign in and open your IRS return: IRS Automático if you're offered it, or Modelo 3.
3. Add foreign income (in the right annexe) and the tax already paid abroad, so you're not taxed twice.
4. Submit and keep the proof.
5. Get your refund or pay by the date on your assessment (nota de liquidação).

Cost

Filing is free. An accountant (contabilista certificado) charges for their help.

Common pitfalls

• Keeping a foreign tax address. Update it as soon as you live in Portugal.
• Leaving out foreign income. As a resident you declare it, then claim the credit for tax paid abroad.
• Missing 30 June. Late returns bring fines.

When to ask a helper

Ask someone with a similar situation (a foreign pension, or income in two countries) who filed recently: they'll know which annexes they used.