Your Comprehensive Guide to IRS Submission for 2025

The IRS (Imposto sobre o Rendimento das Pessoas Singulares) submission process in Portugal can feel overwhelming, but with proper planning and understanding of key deadlines, you can navigate it smoothly. This guide outlines everything you need to know to prepare for the 2025 submission, covering income from 2024.

What is IRS and Why is it Important?

The IRS is the personal income tax applied to individuals in Portugal. Whether you're an employee, freelancer, or retiree, understanding the IRS process ensures you comply with legal requirements and potentially benefit from available deductions. Submitting your IRS declaration correctly and on time is crucial to avoid penalties and maximize your tax refunds.

Who Needs to Submit IRS in Portugal?

Submitting an IRS declaration is mandatory for:

- Residents in Portugal: Individuals residing in Portugal for over 183 days in a calendar year or with a primary residence in the country.

- Non-Residents with Portuguese Income: Individuals earning income in Portugal, such as rental income, capital gains, or income from business activities.

- Freelancers and Self-Employed Individuals: All income, including invoices issued through green receipts (recibos verdes), must be declared.

- Retirees: Pension income, whether from Portugal or abroad, may need to be declared depending on specific circumstances.

What About NHR (Non-Habitual Resident) Status?

If you qualify for Portugal's Non-Habitual Resident (NHR) program, you can enjoy significant tax benefits. NHR is designed for newcomers to Portugal and offers advantages such as:

- A flat 10% tax rate on foreign pension income.

- Exemptions on certain foreign income, including dividends, interest, and royalties, under specific conditions.

- A reduced 20% tax rate on qualifying Portuguese-sourced income, such as high-value professions.

It’s essential to ensure your NHR status is active and correctly applied to your IRS submission to take advantage of these benefits. moviinn® ’s tax experts can assist in verifying and maintaining your NHR status.

NHR 2.0: What Has Changed?

In recent years, Portugal introduced NHR 2.0, refining the original program to ensure it remains competitive while addressing concerns about fairness and transparency. Key updates include:

- Broader Eligibility: NHR 2.0 maintains the appeal of the original program while streamlining requirements for new applicants.

- Updated Tax Benefits: Some tax exemptions were adjusted to align with EU guidelines and avoid double taxation disputes.

- Compliance Enhancements: New reporting obligations ensure better tracking of income and tax compliance for NHR beneficiaries.

moviinn® 's experts are well-versed in NHR 2.0 and can guide you through the application and compliance process, ensuring you maximize the benefits while meeting all legal requirements.

Key Deadlines for IRS 2025

January 2025

By February 17:
- Communicate any changes to your household composition to the Tax Authority (Autoridade Tributária, AT), such as marriage, divorce, or the birth of a child. These updates are essential to ensure your IRS filing reflects your current situation.
- Declare the allocation of properties for business purposes if applicable. This step is critical for those using real estate for professional activities.

February 2025

By February 15:
- Review and confirm your invoices on the Finance Portal to ensure your expenses are correctly categorized for tax deductions. This process helps you avoid discrepancies that could impact your deductions.
By February 25:
- Make any necessary corrections or provide final validation of invoices registered on the e-Fatura system. This step finalizes your deductible expenses and ensures accuracy.

March 2025

By March 15:
- The AT will publish the final amounts of deductible expenses. Review these to confirm they reflect your eligible expenses, including education, healthcare, housing, and other categories.
By March 31:
- If you disagree with the deductions calculated by the AT, you have until this date to file a formal complaint. It’s your opportunity to correct any errors and claim what’s rightfully yours.

April to June 2025

From April 1 to June 30:
- Submit your IRS declaration via the Finance Portal. This period is your window for filing taxes. You can opt for manual submission or use the Automatic IRS option if you’re eligible. The automatic option simplifies the process and can lead to quicker processing.

July 2025

By July 31:
- Expect your IRS refund if applicable. Processing times vary depending on when you submit your declaration and the efficiency of the AT’s processing system.

Common IRS Challenges and How to Overcome Them

1. Understanding Deductible Expenses

Deductible expenses can significantly reduce your tax liability, but they must be accurately reported. Common deductible categories include:

- Education: Tuition fees, school supplies, and other educational costs.
- Healthcare: Doctor visits, medications, and medical procedures.
- Housing: Rent or mortgage interest payments.
- General Expenses: Costs related to your professional activity or dependents.

Solution: Use the e-Fatura platform throughout the year to categorize and track your invoices. Consult a tax expert to ensure you’re not missing any eligible deductions.

2. Changes in Household Composition

Life events like marriage, divorce, or having a child can affect your IRS submission.

Solution: Inform the AT of any changes by the January 31 deadline to ensure your tax situation accurately reflects your household.

3. Filing Late or Making Errors

Missing deadlines or submitting incorrect information can result in fines or delays in processing.

Solution: Mark key dates on your calendar and consider using professional services to ensure timely and accurate submissions.


Tips for a Stress-Free IRS Submission

1. Organize Your Documents: Throughout 2024, gather receipts for deductible expenses (healthcare, education, housing) and proof of income (pay stubs, pension slips).

2. Utilize Tools: Use the e-Fatura platform to track and organize invoices efficiently. This tool simplifies the process of categorizing expenses and calculating deductions.

3. Double-Check Your Data: Ensure all details are correct before submission, including income amounts, deductions, and household information.

4. Seek Professional Guidance: Complex situations, such as independent income or financial investments, may require expert advice. moviinn®  can help you maximize deductions and ensure compliance.


Why Choose moviinn® for IRS Support?

Preparing and submitting your IRS can be daunting, but you don’t have to do it alone. moviinn®  offers a tailored tax assistance service designed to:

- Ensure Accuracy: Our experts review your documents and submissions to minimize errors.
- Maximize Deductions: We identify all applicable deductions to reduce your tax liability.
- Save Time and Effort: Focus on your priorities while we handle the complexities of tax filing.


How moviinn® Works

1. Consultation: Discuss your financial situation and tax needs with our team.
2. Preparation: We gather and organize your documents for submission.
3. Submission: Our experts file your IRS declaration accurately and on time.
4. Follow-Up: We monitor the process and provide updates, including refund timelines or additional payment requirements.


Contact Us Today

Don’t let the IRS process overwhelm you. moviinn®  is here to make tax season hassle-free.

Ready to simplify your IRS process? Contact us today to schedule a consultation and experience a seamless tax submission.

Schedule Your Consultation Now