- February 13, 2025
- Posted by: Toranja Solutions
- Category: Financial Services
2025 Tax Calendar: Key Tax Obligations for Residents and Expats in Portugal
The 2025 tax calendar is essential for residents and expats in Portugal to stay compliant and avoid penalties. Meeting tax obligations ensures efficient financial management, particularly for those with income subject to taxation in Portugal. The Portuguese Tax and Customs Authority (AT) has set key deadlines for 2025, covering tax declarations, income reporting, tax payments, and invoice validation.
To help you stay organized, we have compiled the most important dates to keep in mind for the first months of the year.
Contents
- Rental Income Reporting and Lease Contracts
- Household Composition Update
- Invoice Validation on E-Fatura
- VAT Payment and Declaration
- Property Tax (IMI) Payment
- IRS Tax Return Submission
- IRS Additional Payment (If Applicable)
- FAQs: Tax Obligations for Residents and Expats in Portugal
1. Rental Income Reporting and Lease Contracts
Deadline: Until January 31 and February 15
If you are a landlord and earned rental income in 2024, you must report these earnings to the Tax Authority by January 31, using Form 44, unless you have issued electronic rent receipts.
Additionally, by February 15, you must update the duration of long-term lease agreements. This update is crucial to benefit from tax reductions, as leases longer than five years qualify for reduced IRS rates. For example:
- Contracts between 5 and 10 years: IRS rate reduced to 15% (10% reduction).
- Contracts between 10 and 20 years: IRS rate reduced to 10%.
- Contracts over 20 years: IRS rate reduced to 5%.
2. Household Composition Update
Deadline: Until February 17
If there were changes in your household composition in the previous year—such as marriage, divorce, birth, death, or permanent address change—you must update this information in the Tax Portal by this date.
A correct update ensures that IRS calculations accurately reflect your situation, influencing tax benefits such as dependent deductions and joint taxation.
If no updates are made, the AT will assume that the household composition remains unchanged from the previous year, potentially leading to incorrect IRS calculations.
3. Invoice Validation on E-Fatura
Deadline: Until February 25
Invoices registered on the E-Fatura platform are essential for obtaining tax deductions. To clarify, this system helps taxpayers ensure that all expenses are correctly associated with their Tax Identification Number (NIF) and classified under the appropriate categories, you must log in to the Tax Portal and validate any pending invoices by this date.
4. VAT Payment and Declaration
Deadlines: Vary depending on the tax regime
If you are self-employed or own a business, you must comply with VAT obligations. However, the deadlines depend on your tax regime:
- Monthly regime: VAT return submission and payment by the 20th of each month (except when adjusted due to calendar changes).
- Quarterly regime: VAT return submission by February 20, May 20, September 22, and November 20, with payment due by the 25th of each respective month.
Furthermore, taxpayers exempt under Article 53 must report any excess turnover by January 31 to avoid tax non-compliance.
5. Property Tax (IMI) Payment
Deadlines: Vary depending on the amount due
- The Municipal Property Tax (IMI) is an annual tax levied on property owners. Notably, in 2025, payment deadlines vary depending on the total amount due:
- By May 31, if the IMI amount is €100 or less (paid in a single installment).
- By June 2, for the first installment of IMI (if exceeding €100).
- By September 1, for the second installment, if IMI is between €100 and €500.
- By December 2, for the third installment, applicable when IMI exceeds €500.
Moreover, the Additional to IMI (AIMI), which applies to high-value properties, must be paid by September 30.
6. IRS Tax Return Submission
Deadline: From April 1 to June 30
The IRS tax return for 2024 income must be submitted between April 1 and June 30. To minimize errors, it is advisable to wait two to three weeks before submitting your return, as system updates may occur.
If you are unsure about the best tax option, you can perform simulations in the Tax Portal to decide between filing jointly or separately.
Additionally, before submitting, ensure your IBAN is updated in the Tax Portal to prevent refund delays.
7. IRS Additional Payment (If Applicable)
Deadline: Until August 31
Once the IRS return is submitted, the AT will process the tax calculation, determining whether you are entitled to a refund, have no additional payment due, or need to make an extra payment.
In the case of an additional IRS amount due, the deadline for payment is August 31. Failing to meet this deadline may result in interest charges and tax penalties, making it crucial to ensure timely payments.
Conclusion
Meeting tax obligations within the established deadlines is essential to avoid fines and ensure access to tax benefits. Therefore, both residents and expats should stay informed about their tax responsibilities in Portugal, particularly if they have income subject to taxation in the country.
If you need assistance managing your tax obligations, Toranja Solutions is here to help you navigate Portuguese tax regulations smoothly and efficiently.
FAQs: Tax Obligations for Residents and Expats in Portugal
- The 2025 tax calendar includes important deadlines for IRS submissions, VAT declarations, IMI payments, and invoice validation through E-Fatura. Staying updated with these dates is essential to avoid penalties and ensure compliance with Portuguese tax laws. Our article provides a comprehensive guide to help you navigate these deadlines efficiently.
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Preparing in advance is key to avoiding last-minute issues. First, make sure you know all the relevant tax deadlines based on your residency and income situation. Validate your invoices on E-Fatura before February 25, check your deductible expenses, and ensure your IRS submission is completed between April 1 and June 30. If you’re unsure about your obligations, seeking professional tax assistance can help you optimize your tax return and avoid unnecessary payments, Toranja Solutions can help you find the best option tailored to your needs.
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Yes. If you reside in Portugal for more than 183 days per year or earn income from Portuguese sources, you are required to file an IRS tax return. Expats may qualify for special tax regimes, such as the Non-Habitual Resident (NHR) status, which offers tax benefits for a limited period. Even if you live abroad but have property or rental income in Portugal, you may still have tax obligations.
- E-Fatura is Portugal’s electronic invoice system, where taxpayers must validate their invoices to ensure they receive tax deductions on expenses such as health, education, and housing. Failure to validate invoices before the February 25, 2025 deadline may result in losing valuable tax deductions, leading to higher IRS payments.
- Failing to submit your tax return or missing a tax payment can result in penalties, interest charges, and even legal consequences. If you realize you’ve missed a deadline, it’s best to take immediate action, either by making the payment as soon as possible or contacting a tax professional for guidance.
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