Latest news and stories about irs in legal in Portugal for expats and residents.
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 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.
The Portal das Finanças is Portugal's official online tax platform, operated by the Autoridade Tributária e Aduaneira (AT — Tax and Customs Authority). It is where individuals and businesses file tax returns, check tax records, make payments, and manage their fiscal affairs.
Key functions include filing the annual IRS return (Modelo 3), accessing e-invoices (e-fatura), consulting property tax (IMI) records, requesting tax residency certificates, and paying outstanding tax debts. Access requires a NIF (tax identification number) and a password or digital key.
The portal is essential for anyone living or working in Portugal. Residents should be aware that scam messages impersonating the AT are common — always access the portal directly at portaldasfinancas.gov.pt rather than through links in emails or SMS.
Green receipts (recibos verdes) are the digital invoices used by self-employed workers and freelancers in Portugal to report their earnings. They are managed through the Finance Portal (Portal das Finanças) and are used to calculate annual income tax (IRS) and social security (Segurança Social) obligations.
A technical error within the tax authority's systems has resulted in rejected bank transfers for tax refunds, despite valid IBAN verification, though officials claim the issue is isolated.
Taxpayers with lower incomes, including pensioners, may be eligible to recover tax withheld at source on interest income.
Navigating tax obligations for child support payments requires careful planning; taxpayers should simulate their financial outcomes before filing to ensure compliance and optimize their tax returns.
Tax experts outline several strategies to maximize IRS refunds or reduce tax liabilities, including utilizing Retirement Savings Plans (PPR), charitable donations, joint filing, and optimizing expense deductions.
The Tax Authority defaults to individual tax filings, but couples often benefit from submitting a joint return. Taxpayers are advised to compare both options before finalizing their Model 3 submission to optimize their financial outcome.
The Tax Authority has clarified that while employee stock plans can qualify for reduced IRS taxation, eligibility is contingent upon rigorous documentation and strict adherence to regulatory requirements, with no advance confirmation provided.
The Supreme Administrative Court has ruled against taxing capital gains from the sale of undivided inheritances under personal income tax, yet the Tax and Customs Authority continues to challenge this stance, creating ongoing fiscal uncertainty for taxpayers.
Simply having had tax residency in Portugal, even if partial, in one of the five years prior to returning to the country is enough for a taxpayer to lose the right to the IRS benefit related to the former resident regime. This determination comes from the Tax and Customs Authority (AT) in a binding information notice published on the Finance portal, with this new interpretation potentially restricting the...
Supreme Administrative Court decision corrects an interpretation adopted in 2019
Cancer patients who lost their IRS tax benefits can now request a refund. The tax authority has reversed its decision and will reimburse taxpayers whose disability rating was reduced to below 60%.
A father discovered that he had filed his tax returns for years without including his daughter's tax identification number (NIF) and may have lost hundreds or thousands of euros without knowing. Is there still time to correct it? And can he receive that money now?
The legislator should not construct reactive responses to singular situations, however serious they may be. Tax law requires coherence, stability, and respect for the principle of equality.
In response to the Ministry of Finance's intention to exempt compensation for victims of church abuse from income tax, the Corações Silenciados association is pleased but argues that there are still cases to be recognised.
The government has announced that compensation payments for sexual abuse victims will be exempt from IRS income tax.
An “isolated” error due to “IT constraints” is causing some IRS tax refunds to be rejected by certain banks. The tax authority guarantees the situation is not widespread.
If the annual tax settlement results in a refund of less than 10 euros, the tax authority does not return the money. Likewise, if the payment due is less than 25 euros, it does not collect it either.
Luís Leon suggests that if victims of abuse in the Church do not claim the amount, the State could profit through income tax, as settlement compensations are subject to standard tax rates.
In this special episode about the IRS, I answer four more real-life situations that may be causing you to pay more tax than you should, and how to correct each one of them.
Freelance workers and property owners in the rental market are entitled to deduct various expenses related to their income type from the previous year on their IRS tax returns. These so-called specific deductions correspond to reductions in the gross income of various taxpayers and are tax benefits that allow for lower tax payments.
In this special episode of 'Vamos a contas', Pedro Andersson answers real questions from listeners that could completely change the amount of their tax refund. A concrete example: one listener was going to receive 500 euros... but by correcting an error regarding her children in the household, she will now receive 1,900 euros. Pay attention to this detail.
More than one million families have already submitted their IRS tax returns after the first nine days of the campaign. Statistics from the Finance portal show that as of 1:40 am this Wednesday, the 9th, 1,161,828 taxpayers had already submitted their forms. Of the more than 1.16 million returns submitted, the majority (916,833) relate to...
During the tax filing season, questions regarding ascendants are common: do they belong to the household of their children or grandchildren? Should they file an independent tax return? Which expenses can be deducted? Understanding these rules well can make a difference when calculating the tax to be paid — or received. In...
The 1.6 million euros paid as 'reparation' are not exempt from taxes. In some cases, the financial compensation could be cut to half of the communicated value.
Having dependents in your household does not only impact your personal and financial dynamics — it also has significant effects on your IRS (income tax). The existence of dependents translates into a set of tax deductions that allow for a direct reduction in the tax payable, specifically the personal deduction for dependents. Knowing these rules is essential to ensure...
Taxpayers with children are entitled to more significant tax deductions than other Portuguese citizens. However, for this to happen, they must confirm that these dependents are correctly indicated on the Model 3 form before submitting their return. If they notice that this information is not pre-filled, they should decline the automatic tax return and...
The IRS campaign regarding income received last year has already begun. For some taxpayers, however, filling out the Model 3 is not enough. This is the case for economically dependent self-employed workers, who, in some situations, must also submit the SS annex. Although self-employed workers must report their income quarterly through the portal...
Is it worth filing the automatic IRS? The advantages include ease of use, immediate filing, no risk of forgetting details or incurring fines, and faster tax refund payments. However, it is not always the most advantageous option, warn several tax experts consulted by ECO. For starters, not all deductible expenses may be pre-filled, particularly regarding rent.
Filing your tax return is simpler today thanks to pre-filling and automatic tax processing, but that does not mean you are only paying the tax due. Small details can influence the final amount of your refund or the tax you have to pay. Before submitting your declaration, it is worth confirming some important information. In this guide, we have gathered several aspects that can help you avoid errors and make better use of deductions and tax benefits.
