I’m a Foreigner Living in Portugal: Do I Have to File IRS?

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I’m a Foreigner Living in Portugal: Do I Have to File IRS?

In this article, we’ll explain clearly who needs to file the IRS, how tax residency is determined, and why it’s essential to stay compliant.

IRS: What is it?

The IRS (Imposto sobre o Rendimento das Pessoas Singulares) is the Portuguese personal income tax.

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Tax

IRS

Many foreigners who move to Portugal wonder about their tax obligations. One of the most common questions is: “Do I have to file the IRS even if I’m not Portuguese?” The answer depends on your tax residency status and the type of income you receive.

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‍Tax Residency: The Key Factor‍

Your obligation to file a Portuguese IRS return depends primarily on whether you’re considered a tax resident in Portugal.

You are considered a tax resident if, in a given year:

You spent more than 183 days in Portugal, consecutive or not,
Or you own a home in Portugal that suggests the intention to live there permanently,
Or you requested and were granted Portuguese tax residency.

If you’re a tax resident, you are required to declare your worldwide income.

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‍What if I’m not a tax resident?

Even non-residents who generate income in Portugal — for example, rental income, freelance work, or Airbnb incomes. — may still be required to file and pay IRS on that income.

It’s important to note that being a foreigner does not exempt you from Portuguese tax obligations. The determining factors are where you live and where the income was earned.

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‍Common situations where foreigners must file IRS

Here are a few examples of when foreigners are typically required to file:

Working in Portugal under a local employment contract
Receiving a foreign pension while living in Portugal
Earning rental income from property in Portugal
Working remotely for a foreign company while residing in Portugal

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‍What happens if I don’t file my IRS?

Not submitting your IRS return could result in:

Fines and interest
Delays or issues with residency processes or visa renewals
Difficulties obtaining tax-related documents, like proof of residency or debt-free certificates

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‍Need Help With Your IRS Status in Portugal? Talk to E-Golden.

At E-Golden, we support foreigners in regularizing their tax situation in Portugal. Whether you’re unsure if you need to file, or you’re managing international income, our specialists are here to guide you with confidence and clarity.

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