Latest news and stories about tax deduction in Portugal for expats and residents.
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When filling out your tax return, it is worth remembering that small gestures can make a big difference in many people's lives.
Around 48,000 taxpayers benefited for the first time from a new incentive allowing a 5% deduction of declared domestic work expenses from personal income tax (IRS), yielding an average benefit of €109 per taxpayer. Taxpayers must declare domestic worker salaries by 2 March 2026. The measure is aimed at encouraging registration of domestic workers, reducing undeclared employment and slightly easing household tax burdens, with implications for household finances and expatriates working in the country.
