Portuguese Personal Income Tax 2022; Who is obliged to file a tax return in Portugal? Which are the deadlines? 

The obligation to file a Portuguese Personal Income Tax return regarding Fiscal Year 2022 starts on April 1st, 2023, and will end on June 30th, 2023, which will be the last day to submit it through the website of the Portuguese Tax Authorities.

 

The obligation to submit the referred tax return applies to all taxable persons (individuals) who are registered as residents in Portugal, for tax purposes, and are not exempt of said obligation based on the amount or nature of their income.

 

Additionally, foreign citizens or nationals residing abroad may also be subject to this tax obligation, if they have obtained income in Portugal, during Fiscal Year 2021. In some cases, when the income is liable to flat tax rates, such as interest, no filling obligation arises in Portugal, but in other cases, such as when non-residents obtain capital gains from the sale of real estate in Portugal. On this regard, it should be noted that the Portuguese Tax Authorities has information on transactions involving the transfer of real estate located in Portugal and, therefore, if a non-resident does not declare the income obtained in Portugal, a notification to file a tax return will be issued, and penalties will be imposed. Even if no profit arises from the sale, the obligation to file a personal income tax return remains applicable.

 

Considering the above, we would like to remark that the tax assessments concerning personal income tax on capital gains obtained by non-residents, in Portugal, may be challenged. Essentially, the European Union Court of Justice (EUCJ) considered that there is a discrimination in the Portuguese tax legislation between residents and non-residents, determining a lower taxation imposed on residents and thus violating the principles of the EU. Residents are only liable to tax on 50% of the capital gains, while non-residents are liable to tax on 100% of the capital gains obtained.

 

Based on these decisions, Portuguese courts have been issuing several decisions in favor of non-residents, which ultimately allow a reduction on the capital gains tax due by non-residents on real estate.

 

Considering all the above, the Tax Department of Belzuz Abogados, in Portugal, is available to assist you in the preparation and filing of your Portuguese tax return, as well as in the filing of any tax administrative / judicial / arbitral claim or appeal.

 

Tax Law Department

Madrid

Belzuz Abogados - Madrid office

Nuñez de Balboa 115 bis 1

  28006 Madrid

+34 91 562 50 76

+34 91 562 45 40

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Lisbon

Belzuz Abogados - Lisbon office

Av. Duque d´Ávila, 141 – 1º Dtº

  1050-081 Lisbon

+351 21 324 05 30

+351 21 347 84 52

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Oporto

Belzuz Abogados - Oporto office

Rua Julio Dinis 204, Off 314

  4050-318 Oporto

+351 22 938 94 52

+351 22 938 94 54

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