2026 Tax Compliance Season in Portugal
The 2026 Personal Income Tax (PIT) filing season in Portugal is approaching. Individuals who earned income during the 2025 tax year should assess their reporting obligations in light of their tax residence status, the nature of their income and the potential application of special tax regimes.
Proper compliance is essential to avoid penalties and ensure the correct assessment of tax liabilities.
Who must file?
Individuals who earned income subject to PIT during the 2025 tax year (1 January to 31 December 2025) are, as a rule, required to submit an annual tax return.
Portuguese tax residents (including NHR and IFICI status holders) are subject to taxation on their worldwide income and must declare all income obtained abroad. Resident taxpayers are additionally required to disclose foreign bank accounts held during the relevant tax year, even where such accounts have not generated taxable income.
Non-resident individuals are taxed exclusively on Portuguese-source income. A filing obligation arises, in particular, if a non-resident derives rental income from real estate located in Portugal or realizes capital gains upon the disposal of Portuguese property. Portuguese-source income may also result from activities carried out in Portuguese territory or from income paid or borne by Portuguese entities.
The existence of withholding tax at source does not, in itself, eliminate the obligation to submit an annual return where reporting requirements remain applicable.
When must a tax return be submitted?
The PIT return for income year 2025 must be filed between 1 April and 30 June 2026, exclusively through the Portuguese Tax Authority’s website (Portal das Finanças).
It is important to highlight that penalties and compensatory interest will be due if the tax return is filed after the applicable deadline. Defaulting on filing obligations can soon escalate into an inspection and a tax dispute with the Portuguese Tax Authorities.
Special Tax Regimes – NHR and IFICI
Taxpayers benefiting from either the Non-Habitual Resident (NHR) regime or the Tax Incentive for Scientific Research and Innovation (IFICI) must ensure that such status is correctly reflected in the annual PIT return.
Failure to properly complete the relevant fields and annexes may result in the special regime not being applied upon assessment.
Our assistance
Our Tax Law team can assist you in complying with your tax filing obligations. Please do not hesitate to contact us.
We have in-depth knowledge of tax laws applicable to both domestic and cross-border scenarios. We can help you prepare and review your tax returns to ensure accuracy and compliance while taking advantage of any available tax benefits.
Disclaimer
This publication or document contains general information and is not intended to be comprehensive nor to provide legal or tax advice or services. It should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Professional legal advice should be requested for specific cases. We do not undertake any continuing obligation to advise on future legal amendments, or of the impact on the conclusions herein. Prior results do not guarantee a similar outcome. The contents of this publication or document may not be reproduced, in whole or in part, without the express consent of GFDL.
