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Paying IRS in Portugal: Withholding, Payments on Account, Assessment Deadlines and Late Payment

  • Blog Post
  • Tax, Live in Portugal

Paying IRS in Portugal: Withholding, Payments on Account, Assessment Deadlines and Late Payment

IRS isn’t paid all at once. Most of it is collected during the year through withholding at source, and some taxpayers also make payments on account. The rest — or the refund — comes after you file your return, with the final assessment. Here’s the timeline and what happens if you pay late.
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💼 During the Year: Withholding at Source

  • Employers withhold IRS from salaries every month, using official tables
  • Pension payers do the same
  • Banks and companies withhold 28% on interest and dividends (usually final)
  • Clients may withhold on payments to self-employed people
  • Tenants that are companies or self-employed withhold 25% on rents (10% for moderate rents of up to €2,300 per month, from 2026)

 

Withholdings are advance payments of your IRS (except when final).

🧾 Payments on Account

Taxpayers with business or professional income (category B) may have to make payments on account (pagamentos por conta) in July, September and December, based on the previous year’s tax. They’re calculated by the tax authority and credited against the final tax.

📅 After Filing: The Assessment

  • You file the return between 1 April and 30 June
  • The tax authority issues the assessment (liquidação), usually by 31 July for returns filed on time
  • Refunds are generally paid by 31 August (often much earlier)
  • Tax to pay: the deadline is generally 31 August — or 30 days from the notification of the assessment, if the return was filed late or the assessment was issued later

 

The payment slip (nota de cobrança) is available on the Portal das Finanças.

⚠️ What If You Pay Late?

  • Late-payment interest (juros de mora) runs from the day after the deadline — 7.221% per year in 2026
  • The tax authority starts enforcement proceedings (execução fiscal), with added costs
  • In enforcement, the tax authority can seize bank accounts, salaries, refunds and other assets
  • You may lose access to some benefits that require a regularised tax situation

💳 Can't Pay in Full?

  • You can request a payment plan (pagamento em prestações) on the Portal das Finanças — for IRS, often available before or after enforcement, under conditions and limits
  • Interest continues to run on the outstanding amount

💡 Practical Tips

  • Check the withholding on your payslip — too little means a bill in August.
  • Self-employed? Plan for payments on account and possible withholding exemptions.
  • Turn on notifications and check the Portal das Finanças after filing.
  • Pay on time or request a plan — enforcement costs add up quickly.

🚀 Final Considerations

IRS is collected throughout the year and settled after the return. Knowing the deadlines — and acting quickly if you can’t pay — avoids interest, enforcement and seizures.

📢 Expert Advice: If your assessment shows tax to pay, don’t wait until the deadline. Paying early or requesting a plan in time is always cheaper than enforcement.

Questions about your IRS assessment? Step Inside Portugal’s tax team can review it and help you plan — 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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