IRS Portugal 2026: Complete Tax Guide for Expats

IRS (Imposto sobre o Rendimento das Pessoas Singulares) is Portugal's personal income tax. It applies to all residents and to non-residents with Portuguese-source income. The tax year matches the calendar year (January–December), and declarations are filed the following spring.

You must file an IRS declaration if you are a Portuguese tax resident (present in Portugal for 183+ days, or have your habitual residence here) and earned any income during the year. Non-residents must also file if they have Portuguese-source income not subject to final withholding tax.

Portugal uses a progressive tax scale. For the 2025 tax year (filed in 2026), the brackets range from 13% on income up to €7,703 to 48% on income above €80,000. A solidarity surcharge of 2.5–5% applies to high incomes.

Use the calculator to see exactly which bracket your income falls into and how much tax you owe.

The IRS filing window for the 2025 tax year is April 1 – June 30, 2026. Filing late results in a penalty of €150–€3,750 depending on the delay. If you owe tax, payment is due by August 31.

Portuguese IRS divides income into six categories:

• Category A — Employment income (salary, wages)
• Category B — Self-employment and business income (recibos verdes)
• Category E — Capital income (dividends, interest)
• Category F — Rental income
• Category G — Capital gains (shares, crypto, real estate)
• Category H — Pensions

Each category has its own rules, deductions, and tax rates.

Portugal offers several deductions directly from the tax calculated (deduções à coleta):

• General expenses — 35% of expenses with NIF, up to €250 per person
• Health expenses — 15%, up to €1,000
• Education — 30%, up to €800
• Housing rent — 15%, up to €600–900
• PPR pension contributions — 20%, up to €400
• Dependants — €600–726 per child

Married couples and civil union partners (união de facto, 2+ years) can choose between joint and separate filing each year. Joint filing divides combined income by 2 before applying the brackets — this is beneficial when incomes are very different. Separate filing is better when both partners earn similar amounts. IRS Clarity calculates both scenarios automatically.

Filing is done online via Portal das Finanças. You'll need your NIF (taxpayer number) and access credentials. The portal pre-fills much of the data from employer and bank reports — check it carefully before submitting. First-time filers should request access codes well in advance.

• Forgetting to declare foreign income (all worldwide income must be declared)
• Missing the e-Fatura receipt confirmation deadline (March 31)
• Not claiming all available deductions
• Choosing joint filing without comparing both options
• Confusing tax year with filing year