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- Tax, Live in Portugal
IRS Consignment in Portugal: Give 1% of Your Tax to a Cause at No Cost to You
💚 What Is It?
When you file your IRS return, you can choose to give 1% of your assessed IRS to an eligible entity. That amount comes from the tax the State would receive — not from your pocket. Your tax bill or refund stays exactly the same.
🏛️ Which Entities Are Eligible?
Only entities registered and validated by the tax authority for that year, such as:
- Private social solidarity institutions (IPSS)
- Religious organisations
- Cultural associations
- Environmental organisations (NGOs)
- Youth and student associations
- Other entities with public utility status, under the law
The list is published every year on the Portal das Finanças (search for “Consignação”).
🧾 The VAT Option
You can also give the VAT deduction you’d get from invoices (restaurants, hairdressers, car repairs, gyms and similar) to the same entity. In this case, there’s a cost: you give up that deduction, so your refund is lower or your tax is higher.
📋 How to Do It
- In the IRS return (Modelo 3), on the front page (Rosto), in Table 11
- Enter the NIF of the chosen entity
- Tick whether you also want to give the VAT benefit
- Automatic IRS: select the entity before confirming — you can’t change it afterwards
You can only choose one entity per year (per taxpayer).
❓ Who Can Do It?
Any taxpayer who files an IRS return with tax assessed. If your tax is zero, 1% of zero is zero — but you can still consign the VAT benefit.
💡 Practical Tips
- Choose a cause you care about — it’s free.
- Check the entity’s NIF on the official list before filing.
- Think twice about the VAT option — that one costs you money.
🚀 Final Considerations
IRS consignment is one of the simplest ways to support a cause in Portugal: 1% of your tax goes to the entity of your choice, at no cost to you. It takes a minute in your return.
📢 Expert Advice: Decide your consignment before you file — especially with automatic IRS, where you can’t change it after confirming.
Need help with your IRS return? Step Inside Portugal’s tax team can prepare it for you — find out more about our tax services here. ✨
This article is for general information only and doesn’t constitute tax advice. It reflects the rules as of October 2026.
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