Everything you need to know about Portugal's IRS season - deadlines, documents, annexes, and the mistakes to avoid.

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IRS Filing Season: April 1 to June 30

Portugal's annual tax return - known as IRS (Imposto sobre o Rendimento de Pessoas Singulares) - must be filed between April 1 and June 30 each year, covering income earned in the previous calendar year. For 2026, you are filing for income earned in 2025. The deadline is June 30, 2026.

Late submissions result in fines starting at €25, increasing with the length of delay. If you live in Portugal, filing is not optional - it's a legal obligation.

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Who Needs to File?

You need to file a Portuguese IRS return if you are a tax resident in Portugal (spent more than 183 days in the country or have a habitual residence here), a non-resident with Portuguese-source income such as rental income or capital gains, an IFICI or NHR holder, a freelancer issuing recibos verdes, or a retiree receiving a pension while resident in Portugal. Even if you owe no tax, you may still be required to file.

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What You Need Before Filing

Before you start, make sure you have the following in order:

Your NIF (Número de Identificação Fiscal) - your Portuguese tax identification number. You cannot file without it.

Access to Portal das Finanças - Portugal's online tax platform. If you don't have login credentials, you can request them at your local tax office or by mail.

Your e-Fatura validation - check that all your invoices are correctly allocated to the right expense categories (health, education, housing). The deadline to validate is typically February 28.

Income documents - employment statements, foreign income records, recibos verdes, rental income, investment income, and pension statements. If you paid tax abroad, you'll also need certificates from that country's tax authority to claim double taxation relief.

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How to File: Step by Step

Log in to Portal das Finanças and navigate to "Entregar Declaração" → "IRS" → "Modelo 3." Portugal's system pre-fills much of your return based on data from employers, banks, and e-Fatura - but review it carefully, especially if you have foreign income.

From there, you'll need to complete the relevant annexes. Annex A covers employment income earned in Portugal; Annex B covers freelance and self-employment income; Annex J is mandatory for any foreign income and is where you claim double taxation relief; and Annex L is critical for IFICI and NHR holders, where you declare income under the special regime and apply for the 20% flat rate and foreign income exemptions.

Once reviewed, submit your return and save the confirmation receipt. You'll receive a settlement note (nota de liquidação) within a few weeks showing any tax due or refund.

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IFICI and NHR Holders: What You Need to Know

If you hold IFICI or NHR status, your filing has specific requirements. Even if your foreign income is exempt, you must still declare it — failure to do so can result in penalties or loss of your special regime status. Getting Annex L and Annex J wrong is the most common mistake for expats under these regimes.

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Freelancers and Recibos Verdes

Freelancers in Portugal file under Category B using Annex B. Most use the simplified regime, where a percentage of invoiced income is automatically considered as expenses. Organized accounting - which requires a certified accountant, is generally only worthwhile if your actual expenses significantly exceed the automatic deduction, or if you earn above €200,000 annually, at which point it becomes mandatory.

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Rental Income

Rental income from Portuguese property is taxed under Category F. Non-residents pay a flat 25% on gross rental income. Residents can choose between the flat rate or including rental income in their progressive return - whichever results in a lower tax bill. Allowable deductions include condominium fees, municipal property tax (IMI), insurance, and maintenance costs.

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Common Mistakes Expats Make

The most frequent mistake is not reporting foreign income, even exempt income must be declared. Other common issues include missing the e-Fatura validation deadline, filing the wrong annexes, not claiming double taxation relief, and simply filing late. None of these are difficult to avoid with the right support.

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Need Help Filing?

Whether you're filing for the first time in Portugal or dealing with a complex situation involving foreign income, IFICI status, or multiple income sources, getting it right matters. Our English-speaking team handles the full Modelo 3 submission — from e-Fatura validation to Annex J and Annex L — so you don't have to navigate it alone.

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👉🏻 Get in touch with OnCorporate and let us handle the rest. We are on it.