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The Portuguese Tax Authority has issued Official Circular No. 20291 (17 March 2026), introducing significant updates to the IRS Model 3 tax return, applicable from 2026 onwards. These changes reflect recent legislative updates, particularly the State Budget 2025 (Law 45-A/2024) and other tax reforms affecting individuals, freelancers, and investors in Portugal. This guide breaks down…
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How Portugal classifies IRA withdrawals: Pension income or Capital income? For expatriates and U.S. citizens living in Portugal, one of the most common tax questions concerns how withdrawals from a U.S. Individual Retirement Account (IRA) are treated under Portuguese tax law. This issue becomes particularly relevant when a taxpayer decides to withdraw a large amount…
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A recent arbitration decision issued by the Portuguese Tax Arbitration Court (CAAD) provides important clarification on how Portuguese tax residency is determined for individuals who work abroad but maintain ties to Portugal. The case (CAAD Process nº 402/2025-T, decision of 26 February 2026) focused on whether a taxpayer who worked in France could still be…
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A Comprehensive Guide for Property Owners Introduction As a property owner in Portugal, understanding which expenses are tax-deductible against your rental income is essential for optimizing your financial position and ensuring compliance with Portuguese tax law. This guide provides a structured overview of rental property deductions under Article 41 of the Portuguese Income Tax Code…
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For many expatriates living in Portugal, retirement savings accumulated abroad remain one of the most complex areas of international tax compliance. This is particularly true for UK Self-Invested Personal Pensions (SIPPs). Many UK advisers assume that distributions from a SIPP will always be treated as pension income. However, under Portuguese tax law, the treatment may…
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A Practical Guide for Freelancers and Independent Professionals For many freelancers and independent professionals in Portugal, choosing the right tax regime can significantly influence administrative workload and overall tax efficiency. One question we frequently receive at GoalSeek is the following: Can a taxpayer move from the organized accounting regime to the simplified regime without cancelling…
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Many entrepreneurs, freelancers, and digital business owners operate through a US Limited Liability Company (LLC). However, when the owner becomes a tax resident in Portugal, the tax treatment of LLC income can become complex. The key issue is that Portugal and the United States treat LLCs differently for tax purposes. Understanding this difference is essential…
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If you are a self-employed professional in Portugal currently taxed under organized accounting (contabilidade organizada) but expect lower income going forward, you may be considering switching to the simplified regime (regime simplificado). A frequent question we receive is: Can I move from organized accounting to the simplified regime without cancelling my activity? The answer is…
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Where Are Your Services Taxable? (EU and Non-EU Clients Explained) If you sell online courses from Portugal, one of the most frequent and technically sensitive questions is: Do I charge Portuguese VAT? What happens with EU customers? What about clients outside the EU? Is there reverse charge? Do I need OSS registration? The answer depends…
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In recent months, we have assisted several expatriates whose Non-Habitual Resident (NHR) status was initially denied by the Portuguese Tax Authority (Autoridade Tributária e Aduaneira – AT). In multiple cases, after a structured legal review and formal administrative challenge, the decisions were reassessed — and NHR status was ultimately approved. If your NHR application was…
