Portugal's Tax Season Begins: Key Deadlines and Hidden Pitfalls for 2024
Portuguese taxpayers are now preparing their annual returns, with key deadlines and rules to consider. Since 15 March, the final deductions page has been available, helping individuals verify their pre-filled tax details. This year, changes in advance payments and new benefit schemes mean some may receive less—or even owe money—compared to previous years.
For emigrants returning to Portugal, foreign pensions must be declared in Annex J to avoid unexpected tax demands. Meanwhile, younger workers and low-income earners have specific options to reduce their tax burden, provided they follow the correct procedures.
Taxpayers should start by checking the final deductions page, as this data shapes their pre-filled return. Errors or missing receipts can lead to incorrect calculations, so a thorough review is essential. Those with a Multi-Purpose Disability Certificate showing a 60% or higher disability pay almost no tax, while others must ensure all deductions—such as rehabilitation costs, education expenses, and life insurance premiums—are correctly placed in Annex H. Rehabilitation and education costs belong on line 606, and life insurance premiums on line 605.
Young workers up to age 35 can claim the Young Taxpayer Benefit, but only if they file separately from their parents. The benefit covers the first 10 years of work income, whether consecutive or intermittent. For those under 26 earning less than €8,500 annually, staying as a dependent on their parents' return might still be more advantageous. Couples should compare filing jointly versus separately to see which option reduces their tax bill. Families must also verify deductions for spouses and each child to avoid missing out on potential savings. Low-income earners are advised to simulate including interest from term deposits, savings certificates, or rental income, as this could lower their overall tax liability. The Tax Authority has flagged cases where individuals failed to declare reinvesting property sale proceeds into a new primary home. Those who inherit property with others can avoid capital gains tax if they sell the house before the estate is divided. However, incorrect declarations—particularly regarding foreign pensions in Annex J—have led to unexpected repayment demands for some returning emigrants in recent years. The Order of Certified Accountants warns that many taxpayers may face smaller refunds or owe money this year. This follows advance payments issued last summer, which could now result in balances due upon final assessment.
Taxpayers must act carefully to avoid errors that could trigger repayment demands or missed savings. The final deductions page provides a starting point, but manual checks remain crucial. Those with foreign pensions, disabilities, or low incomes have specific rules to follow, while young workers must file independently to access their benefits. With advance payments affecting this year's outcomes, verifying every detail before submission will help prevent surprises.
