Tax declaration in Portugal
Updated March 21, 2026
Ouch, we’re in the middle of the IRS reporting period in Portugal, taxes! I decided to update this page for you, which can be useful whether you are an expatriate or not. If you already live in Lisbon or elsewhere, you’ll have to fill in your tax return for 2025 income between April 1st and June 30th, 2026, otherwise you’ll have problems with the administration: this page will help you to do it yourself. If you are not yet an expatriate and you are in the middle of a lot of questions, then this article will give you an idea of what to expect in 2026!
If your main residence is in Portugal and you are retired, keep in mind that the NHR (Non-Habitual Resident) status has evolved. For 2026, the total exemption has been replaced by a 10% tax on certain professional income and 20% on pensions for new entrants, while those already under the scheme continue to benefit from their acquired conditions for a non-renewable period of 10 years.
If, on the other hand, you are employed or self-employed in Portugal, you will have to complete your tax return using Modelo 3 on the Portal das Finanças. This can be complicated the first time and the following times, especially since penalties for late filing (between €75 and €150 plus interest) or failing to declare foreign income (up to €22,000) are strictly enforced. We can help you through this administrative process.
The declaration of your IRS can be done directly online on the Portal das finanças. An access to your Portuguese financial administration space will allow you to fill in your tax return but also to obtain information about your income and expenses via the e-Fatura system.
When making purchases, you will be asked for your contributory number (NIF), which allows you to record your expenses and categorise them. It is crucial to transmit your TIN: this allows you to participate in the annual lottery (Fatura da Sorte) but above all to automatically obtain tax reductions on health, education, rent, or restaurant expenses. Warning: if you did not validate your invoices on e-Fatura before February 25th, you lose these deductions (often 15% of the VAT).
Tax return by an English-speaking accountant
The tax declaration in Portugal in 2026 is not always as simple as I describe below since you may be in a special case: multiple income including foreign sources (salaries, rents, foreign bank accounts > €50k), Crypto/NFT gains (taxable at 28%), or specific NHR status. These are specific cases in which simply validating the Automatic IRS will not be enough. You may have to fill in complex annexes (Annex G for capital gains, Annex L for foreign income, Annex J) in order to achieve the most advantageous taxation possible and avoid double taxation thanks to international tax treaties.
For example, I am accompanied by an English-speaking professional accountant in Lisbon for my personal or professional tax returns. A professional typically costs between €150 and €300 for a complex declaration—an investment often lower than the penalties avoided.
If you are in a situation for which you think you need to be accompanied to make your tax return by an English-speaking accountant in Lisbon, you can contact me using the button below. I will transmit your needs to a qualified professional who will accompany you. Be careful, his services are of course not free of charge.
2026 Tax Calendar (2025 Income)
Here are the key deadlines not to be missed this year to avoid the portal blocking your declaration:
- February 15th: Deadline to update your household composition.
- February 25th: Final validation on e-Fatura (essential for your deductions).
- March 31st: Deadline to choose the allocation of your donations (0.5% IRS / 15% VAT).
- April 1st to June 30th: Legal period for filing Modelo 3 online.
- August 31st: Deadline for payment of tax due (or receipt of refund).
Required Forms and Annexes in 2026
Depending on your profile, here are the documents you will likely need to include in your main declaration (Modelo 3):
| Type of Taxpayer | Common Forms / Annexes |
|---|---|
| Employee / Standard Resident | Modelo 3 + Annex A (salaries), G (capital), L (foreign income) |
| Self-employed / Freelancer | Modelo 3 + Annex B (service provision) or Annex C |
| Landlord / Property Owner | Modelo 3 + Annex F (rental income) |
| Retiree (foreign pensions) | Modelo 3 + Annex E or L (depending on pension type) |
Portal das Finanças: financial authorities in Portugal
This is where it all happens: the portal das Finanças (Website here). To start the procedure, log in with your Portuguese TIN and password. If you are not yet registered, click on “Novo Utilizador“.
Checklist before April 1st, 2026:
- Valid TIN + access codes for the portal.
- 2025 income statements (Portuguese and foreign).
- Proof of rent, loan interest, or donations.
- List of foreign bank accounts (mandatory if > €50,000).
Once connected, you will be able to access the IRS Automatico section.
Note: Automatic IRS only applies to simple situations (Portuguese income only, no NHR). If you have foreign income or complex investments, you must go through “Entregar Declaração” and manually fill out Modelo 3.
Portuguese IRS statement online
The process begins with household identification. Double-check the number of dependents, as an error here can lead to your declaration being rejected.
Next, review the summary of your income and expenses. If the pre-filled figures do not match your records, you must proceed with a manual declaration (Modelo 3).
You will then see the pre-liquidation details. Choose the most advantageous option (often joint filing for married couples or those in a civil union).
Don’t forget to confirm your IBAN to receive your refund. Once confirmed, you will receive a filing receipt.
Income Tax Rates in Portugal 2026
For information, here is the progressive tax scale (excluding NHR status):
- Less than €7,703: 13.25%
- From €7,703 to €11,623: 18%
- From €11,623 to €16,472: 23%
- From €16,472 to €21,321: 26%
- From €21,321 to €27,146: 32.75%
- From €27,146 to €39,791: 37%
- From €39,791 to €51,997: 43.5%
- From €51,997 to €81,199: 45%
- Above €81,199: 48%
Note: These rates are indicative and may be adjusted according to the 2026 Budget Law. Non-residents are generally taxed at a flat rate of 28% on Portuguese-source income.
Assistance with Tax Declaration in Portugal
By validating the contact form, you authorize me to forward your request to an English-speaking professional based in Portugal who will be able to contact you directly to discuss your case.
Essencial Portugal is a connecting website. Only certified and approved professionals are able to officially advise you and invoice these accounting services.
