Finance: Irs news in Portugal

The proposed 2027 State Budget (Orçamento do Estado) includes adjustments to personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) brackets, deduction minimums, and standard allowances. Simulations conducted by consultancy EY show that an unmarried worker without dependents earning €1,500 gross per month would save about €37 next year. Larger savings are projected for higher earners, though the ultimate benefit depends on family structure and income level.

The Portuguese government is set to roll out a new income tax reduction beginning this November. The adjustment aims to provide financial relief to taxpayers through updated withholding tax tables.

Vasco Rosendo, Economics editor at CNN Portugal, states that the Government deliberately postponed the announcement of the pension bonus and the income tax cut until this Tuesday.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) has processed 2.66 billion euros in personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) refunds for the 2026 campaign. By August 31, the authority had paid out 2.59 billion euros to taxpayers, with the average refund value reaching 980 euros.

The legal deadline for paying personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) and the second installment of the municipal property tax (Imposto Municipal sobre Imóveis or IMI) ends this Monday. The Tax and Customs Authority (Autoridade Tributária or AT) allows for installment payments on amounts up to 5,000 euros without requiring a guarantee.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) is warning citizens about a rise in fraudulent phone calls, known as vishing, regarding IRS tax returns. Scammers are contacting individuals and asking them to press keys to correct alleged discrepancies in their tax filings. Authorities advise taxpayers to remain vigilant and use only official communication channels.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) received over 6.4 million income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) declarations for 2025. As of mid-July, the government has paid 2.3 million refunds, totaling approximately 2.2 billion euros to taxpayers.

The Tax Workers' Union (Sindicato dos Trabalhadores dos Impostos or STI) has warned of significant IT failures within the Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT). The union reports that thousands of property assessment notifications have been blocked since January due to obsolete software, complicating work for staff and causing confusion for taxpayers.

During the 32nd CDS-PP congress, parliamentary leader Paulo Núncio announced the party will propose doubling tax deductions for families with three or more children. The measure aims to provide greater support to large families and address the country's declining birth rate.

Cancer patients can now request corrections to their personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) returns for previous years. This follows a Supreme Court ruling favoring taxpayers whose disability ratings were reassessed below 60%, with the government confirming the issue is now resolved.

Taxpayers can now validate invoices for books and show tickets on the e-Fatura portal to qualify for tax deductions. These cultural expenses will be applicable to the 2026 income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) declaration. The portal now features specific icons to help users categorize these purchases correctly.

The Central Administrative Court South has ruled that the sale of inherited properties before the estate is divided is subject to capital gains tax. This decision contradicts a previous stance by the Supreme Administrative Court, which generally exempted undivided inheritances from such taxation.

The annual income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) filing campaign is underway, and authorities are reminding self-employed workers to verify their requirements. Economically dependent freelancers may be required to submit an additional social security annex (Anexo da Segurança Social) alongside their standard Model 3 declaration. Taxpayers are encouraged to review their specific filing obligations to ensure compliance.

The government has issued a new ordinance updating the rules for Annex H of the personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) return to include expenses related to domestic work. Although this tax benefit was legally established last year, previous regulations failed to cover it. The update corrects this administrative oversight, allowing taxpayers to claim these deductions in their current filings.

The three-month window to submit annual tax returns (declaração de IRS) for 2025 income opens today on the Finance Portal (Portal das Finanças). Taxpayers have until June 30 to file, regardless of whether they are employees, pensioners, or self-employed workers (trabalhadores a recibos verdes). Experts warn that refunds may be lower this year because the Tax Authority (Autoridade Tributária e Aduaneira or AT) adjusted withholding tables mid-year to leave more money in monthly paychecks.

Taxpayers have until the end of today to dispute expense values on the Finance Portal (Portal das Finanças) before the income tax (IRS) filing period begins on Wednesday. The President of the Republic also approved the expansion of the automatic tax return (declaração automática) to include more young taxpayers under the revised Youth IRS (IRS Jovem) rules. Experts warn that changes to withholding tax (retenção na fonte) tables last year may result in smaller refunds for many households.

Taxpayers have until Tuesday, March 31, to contest the value of expenses recorded by the tax authority for 2024 income. Residents should check the Portal das Finanças to verify that health, education, and general family expenses are correctly listed before the official tax filing period begins on April 1. This is the final opportunity to ensure all tax deductions (deduções à coleta) are accurately applied to the upcoming IRS return.

The Tax Authority (Autoridade Tributária e Aduaneira or AT) has ruled that delays in municipal licensing do not justify extending the 36-month deadline for reinvesting capital gains from a primary residence. This means taxpayers who fail to complete a new home purchase within the legal timeframe due to bureaucratic delays will still face Personal Income Tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) on those gains. Tax-paying residents should note that the AT maintains a strict interpretation of the law regardless of external delays.

ECO summarises monthly tax and reporting obligations for companies and households, noting invoicing rules under Model 10 (Modelo 10) and a March 2 deadline for the IRS Model 37 (Modelo 37) declaration listed by EContas. The piece is a reminder that businesses and families must keep on top of multiple filings this month to avoid penalties. Taxpayers and business owners should check the full EContas checklist and their AT online account for specific deadlines.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) says taxpayers can validate invoices related to the 2025 IRS on the Portal until 2 March, not the usual 28 February, RTP and Correio da Manhã report. The short extension affects anyone who itemises deductions and must confirm invoices on the AT site before the new deadline. Log into the tax portal, confirm your invoices and keep digital receipts in case of queries. Taxpaying residents should act before 2 March to avoid missing deductible expenses.

Update: Deadline falls on Monday 2 March, AT confirms

Diário de Notícias reports AT confirmed by email that because 28 February is a Saturday this year the validation deadline moves to the next working day, Monday 2 March; RTP and CNN Portugal issued alerts reminding taxpayers the Portal will accept invoices up to that date.