Portuguese Tax Return Filing – 2023

The Portuguese tax filing season for both Corporate Income Tax and Personal Income Tax is underway.

Companies

Resident companies and other entities liable to Corporate Income Tax must file a tax return (Modelo 22) until May 31, and the IES/DA must be filed until July 15.

Individuals

Resident individuals must file a tax return during April, May, and June.

An individual is considered to be a tax resident of Portugal if one of the following conditions is met: the individual stays in Portugal for more than 183 days (continuously or not) during the calendar year or twelve months, or the individual has a residential accommodation available in Portugal on any day of the fiscal year, suggesting it is his habitual residence.

Please note that if an individual also qualifies as a resident for tax purposes in other countries, the tax residency status in each country must be determined according to the provisions of the applicable Double Tax treaties.

Individuals that qualify as residents for tax purposes in Portugal are liable to Portuguese personal income tax on worldwide income.

Nonresident individuals are only liable to income tax on the income obtained in Portugal, i.e., income paid or borne by Portuguese entities or due to work performed in Portugal. When a tax withholding is not final, a yearly tax return is required.

Tax filing is required if a nonresident individual receives rental income from a Portuguese property or sells a Portuguese property.

Tax year

The tax year matches the calendar year (January 1st to December 31st). However, under certain conditions, companies may adopt a different tax year.

Please note 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. Please note that penalties apply, in addition to interest, if a tax return is filed after the deadline has elapsed.

Our assistance

Our Tax Law team can assist you in complying with 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 upon, 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 Advogados.