IRS in Portugal 2026: dates, rules and who has to file their tax return

In Portugal, the 2026 IRS season for income earned in 2025 runs from 1st April to 30th June, when residents must file their annual personal income tax return online.

During this window, taxpayers who are resident in Portugal must submit their annual IRS return online via the Portal das Finanças, either through the Automatic IRS system or by completing the traditional Modelo 3 declaration.

What is Automatic IRS?

Automatic IRS is a simplified system that covers a broad group of taxpayers. When a taxpayer is eligible, the Tax and Customs Authority (AT) generates a pre‑filled tax return based on information communicated by employers, banks and other entities.

Those who fall under Automatic IRS must carefully review the data shown in the pre‑filled declaration and confirm that it reflects their real situation for 2025. 

• If everything is accurate and no changes are introduced, the declaration will be considered submitted automatically at the end of the filing period, even if it is not explicitly confirmed.

The AT stresses that the automatic return does not remove the obligation to provide supporting documentation if requested. 

• Taxpayers must be able to present proof of income received and other information included in the declaration, such as invoices for deductible expenses.

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

Even in years when Automatic IRS is available, many taxpayers still need to submit a Modelo 3 tax return. This applies in situations such as:

• When your tax position does not match the information included in the automatic return, for example, because of:
  • A change in marital status or household composition
  • New types of income (such as independent work, rents or capital gains)
  • An updated tax residency status
• When you accidentally confirm an incorrect automatic return and need to correct it.
• When you are not covered by Automatic IRS at all, for example, due to self‑employment, business income, rental income, or other specific categories of income that require detailed reporting.

Modelo 3 continues to be the standard form for taxpayers with more complex situations, including many foreign residents with income or assets in more than one country.

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

If you are not exempt from filing and you neither confirm the provisional automatic declaration nor submit a Modelo 3 by the deadline, the following rules apply:

• The provisional automatic declaration becomes final and is deemed to have been submitted by you for all legal purposes.
• Taxpayers who are married or in a civil partnership will be assessed under the separate taxation regime, as joint taxation requires an active choice in the declaration.
• The provisional tax assessment becomes definitive, with no prior hearing granted to the taxpayer before finalisation.

Missing the deadline can also trigger penalties and default interest, particularly if additional tax is due and paid late.

Freepik

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

Some taxpayers are exempt from submitting an IRS declaration, provided they meet specific conditions. For the 2025 income year (IRS return filed in 2026), you are generally not required to file an income tax return in Portugal if you have only received:

• Income taxed at flat (final) withholding rates, without opting to aggregate this income with other categories for the application of the progressive IRS scales. This usually covers certain types of investment income that are definitively taxed at source.
• Employment income (dependent work) and/or pensions totalling up to €8,500, as long as no IRS was withheld at source on these amounts.

Foreign residents with limited, low‑value income in Portugal sometimes fall into these exemption categories, but the test is always applied to the total relevant income and the way it is taxed, not just to a single source.

Who is not exempt from filing an IRS return?

This exemption regime does not apply to taxpayers who, for example:

• Opt for joint taxation as married taxpayers or civil partners (de facto unions)
• Receive lifetime or temporary annuities that are not classified as pensions
• Receive non‑monetary income, such as certain benefits in kind (for example, a company car)
• Receive alimony payments exceeding €4,104 per year
• Hold assets in jurisdictions with a clearly more favourable tax regime, as listed in paragraph 7 of Article 57 of the Portuguese Personal Income Tax Code (CIRS)

Stay in the know about living in Portugal as a foreigner—get our weekly newsletter for the latest travel, legal, and lifestyle news.