Tax season is here again! If you earned income in Portugal in 2024, it’s time to prepare your IRS (Imposto sobre o Rendimento das Pessoas Singulares) declaration. Filing correctly and on time is essential to avoid penalties and, in some cases, secure a refund.

Here’s everything you need to know about the 2025 IRS season, including key deadlines, who needs to file, and how to make the process smoother.

Key IRS Deadlines for 2025

The IRS declaration for the 2024 fiscal year must be submitted between:

April 1 and June 30, 2025

This deadline applies to all taxpayers, regardless of income type (salaried workers, freelancers, business owners, pensioners, etc.).

Miss the deadline?
Late submissions can result in fines ranging from €150 to €3,750, plus potential interest on unpaid taxes.

Who Needs to File an IRS Tax Return?

If you earned income in Portugal in 2024, you likely need to file an IRS declaration. This includes:

• Employees with wages from Portuguese or foreign employers
• Freelancers and self-employed professionals
• Business owners and independent workers
• Pensioners receiving income in Portugal
• Non-residents earning Portuguese-sourced income (e.g., rental income)

Who is exempt?
Certain individuals don’t need to file, such as those with:

• Annual income below €8,500 (from a single employer and without withholding tax)
• Exclusive Social Security benefits below the tax threshold

How to File Your IRS Declaration

The entire process is done online via the Portal das Finanças (Tax Authority website). Here’s how:

• Log in to portaldasfinancas.gov.pt with your NIF (Número de Identificação Fiscal) and password
• Review your pre-filled information (the system auto-fills some details, but always verify them)
• Choose your tax regime (married couples can file jointly or separately)
• Declare deductions (health expenses, education costs, rental payments, etc.)
• Submit before June 30 to avoid penalties

Tip: If you’re expecting a refund, submitting early means you’ll likely get it sooner!

What Can You Deduct?

To lower your tax bill, don’t forget to include eligible deductions:

• Health expenses – 15% of medical costs
• Education expenses – 30% of tuition fees and school materials
• Rent or mortgage interest – Up to 15% of rent payments (for eligible contracts)
• Family expenses – Childcare, alimony, and dependent costs
• Energy-efficient home improvements – Deductions for eco-friendly upgrades

Double-check all deductions in the e-Fatura section of the Portal das Finanças before filing.

What’s New for 2025?

End of the NHR Regime
Portugal’s Non-Habitual Resident (NHR) tax regime officially ended for new applicants in 2024. However, if you were already under NHR, you can continue benefiting from:

• 10% tax on foreign pensions
• Flat 20% tax rate on specific high-value professions

If you’re unsure about your NHR status, consult a tax expert before filing.

Cryptocurrency Taxation
Portugal now taxes crypto gains under new rules:

• Short-term gains (<1 year): Taxed at 28%
• Long-term gains (>1 year): Exempt from taxation

If you sold or traded crypto in 2024, make sure to report it correctly.

Need Help with Your IRS Declaration?

Taxes don’t have to be stressful! Whether you’re a freelancer, expat, or business owner, OnCorporate can help you file accurately and maximize your deductions.

Book a consultation today at oncorporate.com/contact and let’s make sure your taxes are done right!

‍