IRS: Personal income tax return dates and deadlines in Portugal

The submission of the IRS personal income tax return for income earned in 2024 begins on 1 April and runs until 30 June. During this period, taxpayers in Portugal must submit their IRS return via the Portal das Finanças, either using Automatic IRS or manually entering their income and expenses. Meeting this deadline is crucial to ensure the correct settlement of taxes, avoid penalties, and, for many, receive the much-anticipated refund.

As always, there are specific rules to consider, applying to locals and foreigners who are residents in Portugal. idealista/news has prepared a guide with the essential information to keep in mind for the 2025 IRS campaign.

What is Automatic IRS?

Automatic IRS continues to cover a broad range of taxpayers, particularly employees and pensioners with no additional sources of income. Those who qualify for this system must check whether the pre-filled tax return provided by the Tax Authority (AT) is accurate before confirming it. If all the information is correct and no changes are made, the submission will be processed automatically at the end of the deadline.

“The automatic IRS return does not exempt taxpayers from the obligation to present, when requested by the AT, proof of income received and other relevant information stated in the return,” as explained by the Tax Authority.

In this article, you can find everything you need to know about how to complete the Automatic IRS and who is eligible.

When is it necessary to submit the Modelo 3 tax return?

You must submit a Modelo 3 tax return in the following situations:

• If your tax situation does not match the details in the automatic tax return, for example, due to a change in family status.
• If you mistakenly confirm the automatic return, you should submit a Modelo 3 tax return and mark the "Declaration of Replacement" field in Box 10 of the front page.

What happens if I do not confirm the Automatic IRS or submit the Modelo 3?

If you fail to confirm the provisional tax return or do not submit a Modelo 3 return online within the deadline (1 April to 30 June) and are not exempt from filing, the following will apply:

• The provisional return will automatically become final, and it will be considered as submitted by the taxpayer for all legal purposes.
• Married couples or civil partners will be taxed under the separate taxation regime.
• The provisional tax assessment will become final, and there will be no prior hearing for the taxpayer.
• The taxpayer’s personal page on the Portal das Finanças will provide the information used as the basis for the tax assessment.

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Who is exempt from submitting an IRS tax return in Portugal?

Some taxpayers are exempt from submitting an IRS tax return, provided they meet specific conditions. You are exempt from submitting the 2024 IRS return if you only received, either individually or cumulatively:

• Up to €8,500 in employment income or pensions, provided no tax was withheld at source, and up to €4,104 in alimony payments.
• Income taxed at withholding tax rates, provided you do not opt to add them to your other income for the application of general IRS rates.

You are also exempt if you only received:

• An annual amount of less than €2,037.04 in subsidies or grants under the Common Agricultural Policy (CAP), income on which withholding tax was paid, or employment income or pensions up to a combined total of €4,104.
• An annual amount of less than €2,037.04 from isolated acts, provided you did not receive any other income or only received income subject to withholding tax.

Who is not exempt from filing an IRS return?

You must submit an IRS return if:

• You choose joint taxation as a married or civil partner.
• You receive temporary or lifetime annuities that are not pension-related.
• You receive non-monetary income.
• You receive alimony payments exceeding €4,104.

Refunds and payments

Taxpayers entitled to a refund can expect to receive it within two to three weeks after submission. Those who owe tax must pay it by 31 August; otherwise, they may face penalties.