Yearly tax return
Your first IRS return in Portugal
Every tax resident files an IRS return each spring for the year before. The first one after a move is the hardest, because it mixes Portuguese and foreign income.
The dates
| What | When |
|---|---|
| File the return (Modelo 3) | 1 April to 30 June 2027 |
| Pay any tax due | By 31 August 2027 |
| Refunds | Usually within a few weeks of filing |
The year you arrive
Portugal splits the year you move. You are taxed as a resident from the day you become resident, and as a non-resident before that. In practice:
- From your arrival date, you declare worldwide income: salary, freelance income, rents, dividends, interest and gains, wherever they come from.
- Before that date, only Portuguese-source income is taxed in Portugal.
- Your arrival date should match the date of your tax address change. Keep proof of when you moved.
Which parts of the form you will use
| Annex | For |
|---|---|
| Rosto | Personal details, household and residence |
| Annex A | Employment income from Portuguese employers |
| Annex B | Freelance income (recibos verdes) in the simplified regime |
| Annex J | Income from abroad, and foreign tax already paid |
| Annex L | IFICI, if you were accepted |
Avoiding double tax
If another country already taxed part of your income, you declare the foreign tax in Annex J. Portugal gives a credit under the tax treaty with that country, so you do not pay twice. Keep the foreign payslips, tax certificates and bank statements.
Regimes that lower the bill
- IFICI: 20% on qualifying work income if you applied by 15 January. See the IFICI guide.
- IRS Jovem: up to age 35, part of your work income is exempt for your first ten years of earning: 100% in year one, 75% in years two to four, 50% in years five to seven, and 25% in years eight to ten, up to 55 times the IAS (about €29,500). It cannot be combined with IFICI or the old NHR.
- Joint filing: married couples and civil partners can choose joint or separate filing each year. The portal shows both results before you submit.
Frequently asked questions
When do I file my IRS return in Portugal?
Between 1 April and 30 June of the year after the income was earned. Any tax due is paid by 31 August.
Do I have to declare foreign income?
Yes, from the date you become resident. Residents declare worldwide income, and foreign tax already paid is credited under the relevant tax treaty.
Can I use Automatic IRS in my first year?
Usually not. Automatic IRS does not cover foreign income or most freelancers, so a first return after a move is normally filed by hand.
Ask a specialist
Tell us where you are in the move. A Certified Accountant replies within two working days. Questions about visas, housing or insurance go to a vetted partner, only with your OK.