IRS 2024: What Foreign Residents and Non-Residents in Portugal Need to Know Before 30 June
Diogo Pedro | Lawyer
The deadline to submit the Portuguese Personal Income Tax return (IRS) for income earned in 2024 is 30 June 2025. Whether you live in Portugal or earn income here through real estate or investments, it’s important to confirm whether you are required to file and what that involves.
In some situations, particularly when declaring foreign income and applying for a tax credit under an international double taxation treaty, you may not yet have access to all the required documentation, such as the final foreign tax return or official confirmation of tax paid abroad, by the 30 June deadline.
Where this applies, taxpayers may request an extension by submitting IRS Form 49. This request must be filed no later than 30 June and, once accepted, extends the deadline to submit the IRS Model 3 until 31 December of the same year.
Who Is Required to Submit an IRS Return?
If you are considered a tax resident in Portugal, you must declare your worldwide income, including employment income, investment returns, rental income, pensions, and more, regardless of where the earnings were generated.
Non-residents are required to declare only
Portuguese-sourced income that has
not already been subject to final or autonomous withholding tax. This typically includes
rental income from Portuguese property and, in some situations,
interest and dividends, depending on the withholding treatment applied.
How to Submit the IRS Declaration
The IRS return must be submitted online via the Tax Authority’s Portal das Finanças. You’ll need a Portuguese taxpayer number (NIF) and login credentials. If you’re working with a certified accountant or legal representative, they may handle the submission on your behalf.
Consequences of Late or Missing Submissions
Failing to submit your tax return by the deadline may lead to penalties, starting at €150, as well as interest charges on any tax due. Even for non-residents with limited income, the obligation to file still applies if the income was not previously taxed at source.
What Can Be Deducted on the IRS Return?
If you are a tax resident, a range of expenses may reduce your taxable income. These include:
- Health-related expenses
- Education costs
- General household expenses
- Rent paid on your permanent residence
- Mortgage interest (in specific cases)
Non-residents are generally not entitled to these deductions, as they apply only to the global income of residents.
Is Joint Taxation an Option?
Yes. Married couples or those in a legal partnership may choose to be taxed jointly. This may lower the overall tax burden, particularly when income is unevenly distributed between spouses. The option must be selected during submission, and the financial outcome should be reviewed in advance.
When Do I Need to Pay Any Tax Due?
If your return results in additional tax to be paid, the deadline for payment is 31 August 2024. The Tax Authority will issue a payment reference once your return has been processed.
Can I Correct My Return if I Make a Mistake?
Yes. You can submit a corrected return (declaração de substituição) via the same online platform. If submitted within 30 days of the original declaration, no penalties typically apply. After that, late interest or fines may be assessed.
How Can I Track the Status of My IRS Return?
You can check the progress of your return on the Portal das Finanças under “IRS” > “Consultar Declaração.” This area provides updates on whether the return has been accepted, processed, and whether a refund has been issued.
When Can I Expect a Refund, if Applicable?
If you are entitled to a refund, it is usually issued within 12 weeks of submission. The exact timeline may vary depending on when you file and how complex your tax situation is.
If you are unsure about your IRS obligations or would like assistance in preparing your declaration, our Tax team is here to help. We assist both residents and non-residents in managing their tax obligations in Portugal with accuracy and efficiency.
