IRS 2025 in Portugal: The Essential Guide to Filing Your 2024 Income

Deadline: June 30, 2025
By Rui Fragoso Borges, CPA nº 84392 | GoalSeek – Tax & Financial Advisory

If you live in Portugal or earn income from Portuguese sources as a non-resident, it’s time to report your 2024 income to the Portuguese Tax Authority. Between April 1st and June 30th, all taxpayers must submit their IRS declaration (Personal Income Tax return). This comprehensive guide outlines the key steps to ensure your filing process is accurate and stress-free.

Which IRS Annexes Apply?

Each taxpayer must submit specific annexes depending on their income types and tax status. It’s crucial to distinguish between individual annexes (one per taxpayer) and household annexes (covering joint or dependent income).

Individual Annexes (one per taxpayer)

Annex B: For freelancers or those issuing one-off invoices under the simplified regime.
Annex C: For self-employed professionals under the organized accounting regime (gross income above €200,000). Must be certified by a CPA.
Annex D: For income from transparent entities or undivided estates.
Annex J: For foreign-sourced income.
Annex L: For Non-Habitual Residents (NHR) or beneficiaries under the scientific research and innovation incentive scheme.
Annex SS: For reporting gross self-employment income to Social Security and identifying contracting entities.

Household Annexes (joint taxation or with dependents)

Annex A: Employment and pension income for all household members.
Annex E: Investment income (e.g., bank interest, financial insurance).
Annex F: Rental income from real estate.
Annex G: Capital gains or losses from the sale of property or shares.
Annex G1: Non-taxable income, such as capital gains on properties acquired before 1989 or income from blacklisted jurisdictions.
Annex H: Family deductions and tax benefits (automatically pre-filled, but confirmation required).
Annex I: Used by the head of household for reporting income from undivided estates.

Who Is Exempt from Filing?

You may be exempt from filing in 2025 if, in 2024, you earned only:

Salaries or pensions up to €4,104;
Up to €2,037.04 from one-off invoices (with no other income subject to progressive rates);
Agricultural subsidies below €2,037.04;
Income solely subject to final withholding tax (e.g., bank interest).

Other exemptions apply if:

Your total salary or pension income did not exceed €8,500, with no withholding;
You received alimony up to €4,104;
You earned only exempt investment income and chose not to aggregate it.

Important: These exemptions are void if you opt for joint taxation, receive certain types of pensions, or earn benefits in kind.

How to Declare Income for Dependents?

Dependents up to age 25 (if not earning more than 14x the national minimum wage, i.e., €11,480) can be included in the parents’ tax return. Depending on custody and filing status, only a percentage of the dependent’s income may be declared.

Step-by-Step: Submitting Your IRS

Access the Tax Portal
Log in at www.portaldasfinancas.gov.pt and choose between Automatic IRS or Manual Submission.
Complete the Cover Form
This includes:
- Household composition
- Filing status (joint/separate)
- Bank account for refunds
- Option to assign part of your tax to a public cause
Attach the Correct Annexes
Pre-filled annexes A and H may be available. Others must be added or edited manually depending on your income types.

Tip: If you qualify for the IRS Jovem (young worker benefit), be sure to complete code 417 (Annex A) or 3E (Annex B).
Validate, Simulate, Submit
- Validate for errors
- Simulate your estimated tax bill/refund
- Submit once confirmed

Key 2025 Updates (for 2024 income)

Crypto Income: Declare as dependent work in Annex A (code 419)
Remote Rent Offset: In Annex F, you may deduct rent paid (over 100km away) against rent received
Domestic Work Deduction: New €200 deduction in Annex H for legally declared household work
Foreign Bank Accounts: Annex J now requires IBAN and BIC (e.g., Wise, Revolut)

Final Notes

Filing your IRS correctly ensures compliance and maximizes eligible deductions or refunds. If you’re unsure about annexes, foreign income reporting, or eligibility under special regimes like NHR, consult a certified tax advisor.

At GoalSeek, we help freelancers, expatriates, and international professionals in Portugal navigate tax season with clarity and confidence.