Portugal has officially taken a major step toward making tax compliance more efficient and user-friendly — particularly for expatriates, remote workers, and self-employed professionals. With the introduction of Decree-Law No. 49/2025, effective 1 July 2025, the Portuguese government aims to modernize its tax system and reduce the bureaucratic burden on individuals and small businesses.
Whether you file as a freelancer under Category B, rent property, support family members, or simply want to make the most of your IRS deductions — here are the most relevant updates for you:
1. 🗓️ Deadline Extensions Across the Board
Several key deadlines have been extended to 28 February of the following year, including:
-
Declaring dependents’ school attendance
-
Notifying shared custody arrangements
-
Reporting deductible expenses in the e-Fatura portal
This extra time offers greater flexibility for those managing cross-border documentation or navigating multiple tax systems.
2. 💼 Category B (Freelancers): Simplified Expense Reporting
If you’re under the simplified tax regime, you can now report eligible business-related expenses — including partially used properties and utilities — up until the end of February via the Finanças Portal.
This change allows you to better optimize your taxable income and avoid missed opportunities.
3. 👨👩👧 Automatic IRS Filing: Household Info Must Be Up to Date
The automatic IRS filing system relies heavily on accurate household data. You now have until 28 February to confirm:
-
Family composition
-
Joint filing eligibility
-
Shared dependents
Both partners (or parents) must authenticate any updates in the Finance Portal to ensure deductions and income sharing are accurate.
4. ⚖️ Shared Custody and Expense Allocation Made Simpler
Parents with joint custody (residência alternada) or who share dependent expenses unequally (e.g., 60/40) must report these details annually. The new deadline aligns with other IRS declarations — 28 February — and helps ensure fair and accurate tax treatment for both parents.
5. 🧾 Classify Invoices in e-Fatura for IRS Deductions
Not all invoices are automatically categorized. To maximize deductions for health, education, rent, and general family expenses, you must log in and classify any pending invoices.
With the extended February deadline, you now have time to do this thoroughly — a simple task with potentially large financial benefits.
6. 🏥 Public Institutions Will Now Report Your Deductible Expenses
Good news: public schools, hospitals, and eldercare institutions are now required to automatically report your eligible expenses to the tax authority. This includes:
-
Tuition fees
-
Healthcare costs
-
Long-term care or elder home expenses
These will be pre-filled in your IRS return — no manual reporting required.
7. 📍 Tax Benefits for Portugal’s Interior and Islands
Families relocating to or residing in the interior regions or autonomous islands (Azores, Madeira) may qualify for enhanced deductions. You can declare:
-
Education expenses for dependents studying in those regions
-
Rent invoices for relocation
-
Cost-of-living incentives tied to rural residency
Again, all must be submitted via the Portal by the February deadline.
8. 👵 Simplified Deduction for Elder Care
If you’re supporting elderly family members in public retirement homes or care facilities, those institutions will now submit the relevant data directly to the tax authority. You’ll no longer need to gather paperwork — just verify the pre-filled data in your IRS return.
9. 💸 Withholding Tax Threshold Raised to €25
This small but significant change means that withholding tax is no longer applied to payments under €25 for:
-
Category B (freelancers)
-
Category E (investment income)
-
Category F (rental income)
This is especially useful for freelancers with micro-payments and landlords of short-term or co-living rentals.
10. 🧾 Mandatory Use of Digital Invoicing Tools
Whether you’re issuing a single invoice (isolated act) or running a freelance business, you must now use AT-certified invoicing systems or the official Finance Portal. Paper-based or manual templates will no longer be accepted.
Landlords not using electronic rent receipts will continue to use Model 44, but the deadline has been extended to 28 February, and the form is expected to be phased out soon.
✅ Final Thoughts: Portugal is Getting Smarter About Tax
With these measures, Portugal is reducing red tape, embracing automation, and improving clarity for taxpayers. For expats and freelancers, this means:
-
Fewer administrative tasks
-
Improved access to deductions
-
More time to comply and plan
At GoalSeek, we help individuals and freelancers navigate Portugal’s evolving tax landscape — from international income planning to local compliance. If you’re unsure how these changes apply to you, book a session with us for tailored, expert advice.
#PortugalTaxes2025 #FreelancersInPortugal #ExpatTaxTips #GoalSeekAdvisory #DigitalNomadsPortugal #SimplifiedIRS
Deixe um comentário