As we approach tax season, it’s crucial to stay on top of upcoming tax deadlines, especially if you’re considering taking advantage of Portugal’s Non-Habitual Resident (NHR) tax regime. The deadline for NHR applications for the 2024 tax year is fast approaching on March 15, 2025. If you’re planning to apply, it’s essential to start the process now to ensure everything is in order before this date. Read on to find out more about the NHR regime and other key tax deadlines you need to be aware of for the year ahead.
The NHR Tax Regime: What You Need to Know
Portugal’s Non-Habitual Resident (NHR) tax regime provides significant tax benefits for individuals who become tax residents in Portugal. It’s especially attractive for those with foreign income or retirees seeking tax advantages. To benefit from the NHR regime for 2024, applications must be submitted by March 15, 2025.
The process can be complicated, and it’s essential that all the necessary documentation is prepared correctly and submitted on time. We strongly encourage anyone considering applying for the NHR regime to contact us immediately to discuss eligibility and ensure everything is in place before the deadline.
Other Key Personal Tax Deadlines in Portugal
Beyond the NHR application deadline, there are several important tax dates to keep in mind for individuals residing in Portugal. These deadlines are typically set annually, so it’s essential to plan ahead to avoid penalties. Here’s a breakdown of other important tax obligations for 2024:
1. IRS (Personal Income Tax) Declarations:
Deadline: Between April and June each year (exact dates may vary).
This is for your annual IRS declaration for income earned in the previous year. It’s crucial to gather all necessary documentation, such as income statements, receipts for deductible expenses, and bank statements, to ensure accurate filing.
Important Tip: If you want to benefit from deductions like health expenses, education, gym, or mechanical expenses, remember to confirm all invoices online in your personal page by February 25th.
2. IMI (Municipal Property Tax):
IMI payments, which apply to property owners in Portugal, are spread throughout the year. Timely payments are essential to avoid late fees and penalties. Here’s the payment breakdown:
- €100 or less: Pay the full amount by May 31st of the following year.
- €100 to €500: Pay in two instalments: one by May 31st, and the second by November 30th.
- €500 or more: Pay in three instalments: May 31st, August 31st, and November 30th.
3. Social Security Contributions:
If you are self-employed or receive income from certain sources, social security contributions may be required. After the first year of exemptions, you will need to submit a quarterly report to the social security system and make monthly payments.
Understanding your obligations and keeping track of payment deadlines is essential to avoid late fees.
Plan Ahead for a Stress-Free Tax Season
Tax efficiency doesn’t happen overnight. It’s a year-round process that requires careful planning and attention to detail. Navigating the complexities of the Portuguese tax system can be challenging, but our financial advisers are here to assist you. We provide tailored financial strategies designed to help you optimise your allowances.
Why You Should Contact Us Now
Sufficient Time for Preparation: Early engagement allows us to review your financial situation, identify potential deductions, and ensure that all documentation is correctly prepared.
Peace of Mind: With financial guidance, you can confidently navigate your tax obligations so you can focus on what matters most.
Avoid Penalties: Proactive planning helps ensure that you meet deadlines and submit accurate information, avoiding costly penalties for late filings or errors.
Don’t miss out on tax benefits! The NHR regime and other tax advantages could significantly reduce your overall tax liability. To ensure you benefit from all that Portugal has to offer, get in touch with us today to make sure everything is in order for the upcoming tax season.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or tax advice. Tax regulations, including the Non-Habitual Resident (NHR) regime, are subject to change, and eligibility criteria may vary. While we strive for accuracy, interpretations of tax laws and deadlines may differ. Readers should verify all tax-related information directly with the Portuguese Tax Authority (AT) or consult a qualified tax professional before making any financial or tax-related decisions. We accept no liability for any errors, omissions, or reliance on the information provided.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Brexit has led to many unintended consequences surrounding financial services for UK expats living abroad. The main one being that most UK financial advisers will not now be able to advise or manage their clients UK financial products such as pensions and investments whilst their clients are living in the EU. Now the latest hurdle UK financial advisers are facing is Professional Indemnity Insurance (PII) which will not extend to UK expats resident in the EU.