How to do Your Personal Tax Return in Portugal

Portugal is an attractive destination for expats, remote workers, and digital nomads from all over the world. The country offers a high quality of life, stunning landscapes, friendly people, and a favorable tax system. However, as a resident in Portugal, it is your responsibility to file your personal tax return each year. In this blog post, we will guide you through the process of doing your personal tax return in Portugal.

Where do I have to do my personal tax return?

The first thing you need to determine is whether you are a tax resident in Portugal. You are considered a tax resident in Portugal if you spend more than 183 days in the country within a year, or if you have a permanent home in Portugal. As a tax resident, you are required to file your personal tax return in Portugal every year, even if you have no income or assets in the country.

To do your personal tax return, you need to register with the Portuguese tax authority, known as Autoridade Tributária e Aduaneira (AT). You can register either online or in person at a local tax office (Serviços de Finanças). To register online, you will need a Portuguese tax identification number, known as Número de Identificação Fiscal (NIF). If you don't have a NIF yet, you can apply for it online or in person at a tax office.

Once you have your NIF, you can register for the AT's online tax portal, known as Portal das Finanças. The portal allows you to access and submit your personal tax return online, as well as check your tax status, pay taxes, and manage your tax affairs.

Which things to pay attention to when doing my tax return

When doing your tax return in Portugal, there are several things you need to pay attention to. Here are some of the most important ones:

1. Income sources: You need to declare all your income sources, whether they are from Portugal or abroad. This includes employment income, self-employment income, rental income, investment income, and any other sources of income.
2. Tax deductions: Portugal offers several tax deductions that can reduce your taxable income and lower your tax bill. These include deductions for health expenses, education expenses, charitable donations, and mortgage interest. Make sure to take advantage of all the deductions you are eligible for.
3. Tax credits: Portugal also offers several tax credits that can reduce your tax bill even further. These include tax credits for children, dependents, and elderly relatives, as well as tax credits for certain types of investments.
4. Double taxation: If you have income from a foreign country, you may be subject to double taxation, meaning you have to pay taxes in both countries. However, Portugal has tax treaties with many countries that can prevent double taxation. Make sure to check if your country of origin has a tax treaty with Portugal and how it affects your tax obligations.
5. Deadlines: The deadline for submitting your personal tax return in Portugal is usually April 30th of the following year. However, the exact deadline may vary depending on your income sources and other factors. Make sure to check the deadlines for each type of income and plan accordingly.
   

Whom can I ask for help doing my personal tax return for me?

Doing your personal tax return in Portugal can be a daunting task, especially if you are not familiar with the Portuguese tax system or the language. However, there are several options for getting help:

1. Tax advisors: You can hire a tax advisor to do your personal tax return for you. Tax advisors are professionals who specialize in tax law and can help you navigate the Portuguese tax system, maximize yourtax deductions and credits, and ensure that you comply with all tax obligations. They can also provide advice on tax planning and optimization. However, hiring a tax advisor can be expensive, and you need to make sure that you choose a reputable and experienced professional.
2. Online tax services: There are several online tax services that can help you file your personal tax return in Portugal. These services typically use software that guides you through the process of filling out your tax return, and they may offer additional features such as tax planning and optimization tools. However, you need to make sure that the service you choose is reliable and secure, and that it complies with Portuguese tax regulations.
3. Local support: If you have Portuguese friends or colleagues who are familiar with the tax system, you may be able to ask them for help. They can provide guidance on how to fill out your tax return and may be able to translate or explain any Portuguese terms or requirements that you are not familiar with.

Doing your personal tax return in Portugal can seem daunting, but with the right information and support, it can be a straightforward process. Make sure to determine whether you are a tax resident in Portugal, register with the Portuguese tax authority, and pay attention to the income sources, tax deductions, tax credits, double taxation, and deadlines. You can also get help from tax advisors, online tax services, or local support. By taking care of your tax obligations in Portugal, you can enjoy all the benefits that the country has to offer, without any unnecessary complications or surprises.