Portuguese Tax Returns: Getting Started

If you rent out your holiday home in Portugal, you are required by Portuguese law to declare your rental income - whether you are resident in Portugal or not.

Declaring holiday rental income is done by filing a Portuguese tax return. This can only be done online, between 1 April and 31 May each year.

Your rental income will usually fall under Category B - Business and Professional Income, Simplified Regime. You can check if you fall under this category by referring to your 'Declaração de Início de Atividade' document.

This blog outlines how to file a Portuguese tax return for your Alojamento Local, based on holiday rental income declared under Category B, Simplified Regime.

Step 1: Sign in to the Portal das Finanças online

Using your fiscal number (NIF) and your password (senha), click on 'iniciar sessão' to log into your tax account online.

To learn how to register with the Portal das Finanças online, click here.

Step 2: Select IRS Modelo 3

Using the search bar to find 'IRS > Entregar Declaração' or use the quick access links on your tax homepage to select IRS Modelo 3:

Then select 'Entregar a 1ª declaração e declarações de substituição':

Select from the drop down list the relevant tax year. You will then be taken to the online tax return form.

To fill out your declaration simply and quickly, select the option 'Obtenção de uma declaração pré-preenchida' (Obtain a pre-filled declaration)*.

*Choosing this option means that In cases where it is possible, the Tax and Customs Administration pre-complete the declaration for you. If you find that the pre-filled information does not correspond to your actual figures, you should correct it accordingly.

Continue to follow the prompts and opt to file a joint tax return if applicable.

Step 3: Fill out the IRS Modelo 3 cover sheet

The tax return is made up of a basic cover sheet plus various annexes that can be added depending on your tax situation. On the cover sheet, fill out your basic information:

Section 1

This should already be pre-filled. If not, you can find this information on your 'Declaração de Atividade' document.

Section 2

Select from the drop down list the relevant tax year.

Section 3

Enter your NIF.

You can add the data of taxable person B if applicable.

Section 4

Select your civil status.

Section 5

5A: For joint taxation marks the field 01 "SIM", (''Yes''); fill out the relevant information about 'Person B'.

5B: If you selected 'widow/er' in question 4, tick field 04 "SIM", (''Yes'') (joint taxation) or field 05 "Não", (''No'') (separate taxation).

If you select "Yes", fill in the NIF of the deceased spouse.

If you select "No", do not fill in anything else in Table 5B and identify the deceased spouse in question 6A.

Section 6

If you have chosen not to opt for a joint tax return, identify your spouse or unmarried partner in field 6A.

Section 7

Continue to fill in the relevant household information.

Section 8

Fill out section A (residents), section B (non-residents)* or section C (partial residence).

* For section B (non-residents), select field 07 to follow the general tax regime. Alternatively you can check field 08 and indicate which tax regime you would prefer from the listed options.

Enter the total income earned abroad in field 11; this is where you declare your GROSS holiday rental income. If your income is not in Euros, you must convert the amount according to the exchange rate at the time of receiving the income.

Section 9

Fill in your bank details (IBAN) to receive any tax rebates due.

Section 10

If you are filing your first declaration of the tax year select field 01; if you are filing a replacement return, select field 02.

Section 11

Indicate a preferred charity/similar to receive a portion of your tax due (not a required field).

Section 13

The deadline for Portuguese tax returns is between April 1 and May 31. However, section 13 lists some exceptions to this rule; only fill in section 13 if these special terms apply to you.