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- Tax, Live in Portugal
The Tax Year in Portugal: Calendar Year, but Only Your Residence Period When You Arrive or Leave
📅 The Calendar Year
- IRS is assessed on income earned between 1 January and 31 December
- The return is filed the following year, between 1 April and 30 June
- This applies to everyone — residents and non-residents
If you’re coming from a country with a different tax year (such as the UK), you’ll need to split your foreign income by calendar year for your Portuguese return.
✈️ The Year You Arrive
In the year you become a Portuguese resident:
- Before your arrival date: you’re a non-resident — taxed in Portugal only on Portuguese-source income
- From your arrival date: you’re a resident — taxed on worldwide income
Your return indicates both periods, with the date your residency started. Foreign income earned before that date isn’t taxed in Portugal.
Exception: if you were already a Portuguese resident at any time in the previous year, you’re treated as resident from 1 January.
🚪 The Year You Leave
In the year you stop being a resident:
- Until your last day in Portugal: resident — worldwide income
- After that: non-resident — only Portuguese-source income
But watch out: you may be treated as resident for the whole year if:
- You stayed more than 183 days in Portugal that year and received, after leaving, income that would have been taxed in Portugal (unless taxed in an EU/EEA country or at a similar rate elsewhere), or
- You become resident again in the following year
🧮 Practical Example
You move to Portugal on 1 September 2025:
- January–August 2025: non-resident — only Portuguese income (if any) is taxed in Portugal
- September–December 2025: resident — salary, dividends, rents and gains from anywhere in the world are taxed in Portugal
- Your 2025 return (filed in 2026) reflects both periods
📌 Why It Matters for Planning
- Timing of income: a bonus, dividend or property sale before your arrival may be outside Portuguese tax
- Timing of departure: income received after leaving may still be taxed in Portugal
- Special regimes (IFICI, IRS Jovem, ex-resident) count years from the year you become resident
- Deductions: personal deductions may be adjusted for the period of residence
💡 Practical Tips
- Know your residency start date — and keep proof.
- Plan large income events around your arrival or departure.
- Coming from the UK or another non-calendar tax year? Prepare calendar-year figures.
🚀 Final Considerations
The Portuguese tax year is always the calendar year, but in the year of arrival or departure, only the period of residence counts for worldwide taxation. Knowing your exact dates is the key to a correct first — or last — return.
📢 Expert Advice: If you’re planning to move to Portugal, review your expected income for the year. Receiving it before or after your arrival date can change where it’s taxed.
Moving to or from Portugal? Step Inside Portugal’s tax team can plan your arrival or departure year — 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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