Portugal

Tax returns

PIT returns should be filed by 30 June of the year following the one the income relates to. An extended deadline may apply if certain conditions are met. 

Married couples may opt to file a joint tax return disclosing the total income earned by both.

In case of taxpayers who do not opt for filing a joint tax return, the respective dependants should be reported in both parents’ annual income tax returns.

Foreign bank accounts are required to be disclosed on annual income tax returns.

With the 2024 State Budget, the annual PIT return shall mandatorily include information on all sources of income earned in the previous year, including income subject to final WHT rates not aggregated with other income or not subject to PIT exceeding EUR 500, as well as assets held in jurisdictions subject to a clearly more favourable tax regime. 

Payment of tax

Portugal uses a pay-as-you-earn (PAYE) system, adjusted by annual tax return filing. Additional payments or refunds are made based on the tax returns filed.

For Portuguese income tax returns electronically submitted by the legal deadline (i.e. by 30 June of the year following the one the income relates to), the Portuguese tax authorities should issue the tax assessment by 31 July of that year and the respective tax due, if applicable, should be paid by 31 August. If the Portuguese tax authorities do not issue the tax assessment by 31 July, the tax liability should be paid within one month from the issue of the referred tax assessment.