The Personal Income Tax (IRS) was published through Decree-Law 442-A /88 dated November 30. Personal Income Tax is levied on the income of single persons, divided into 6 categories.
Residents in Portugal are taxed on the totality of their income (in Portugal and abroad) and non-residents are taxed for income obtained in Portugal (according to the different Personal Income Tax categories). A special regime was created in 2009, for non-habitual residents.
The income tax rules in Portugal vary depending on whether you’re classified as a resident or non-resident.Residents must pay Portuguese income tax on their worldwide income, while non-residents only need to pay the tax on Portuguese earnings.Workers are tax residents in Portugal if either of the following rules apply:
All IRS tax returns independently of the type of income earned, need to be submitted from the 1st of April until the 30th of June.
The tax year in Portugal is the same as the civil year, so you declare the income from 1st of January 2019, until 31st of December 2019.
PASSWORD: Make sure you and your partner have a password to access the Tax Portal. If you do not have one, request new password near by financas
COPY OF ID AND NIF: for you, your partner and any dependents you may have;
DECLARATIONS OF INCOME: gather the statements of income and withholding taxes;
BANK ACCOUNT: your IBAN will be necessary to include on your IRS return and will make any tax refund much quicker. This also includes the IBANs from any foreign bank accounts opened in your name.
CGT: if you have sold a property in 2019, make copies of the deeds (for purchase and for sale) and gather invoices for the real estate commission and home improvements. These can be deducted against any capital gain tax.
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