How to File Taxes in Portugal (2026): IRS Step-by-Step Guide for Freelancers and Expats

The IRS filing window opened this morning. You have until June 30 to file your 2025 declaration.

Ninety days sounds like plenty until you log in to Portal das Finanças for the first time and find a form with eleven possible annexes. Most of them won't apply to you. But figuring out which ones do (and what to put in them) is where people get stuck.

This is the walkthrough I wish I'd had the first time: a freelancer on the simplified regime, earning service income from Recibos Verdes, trying to understand what's actually being asked. If you also have foreign income from the UK, Germany, France, the US, or anywhere else, there's a dedicated section below that covers how that works.

First: IRS Automático, does it apply to you?

You may have heard about IRS Automático, the simplified pre-filled return. For most freelancers, it won't apply, but the rule is more nuanced than "never for Recibos Verdes."

Category B workers on the simplified regime can qualify if: registered under a specific Art. 151 CIRS activity (not catch-all code 1519), all invoices issued via the AT portal, full-year Portuguese resident, no foreign income, and no NHR or IFICI status. Most expat freelancers are excluded by foreign income or NHR/IFICI status. Not sure if you qualify? See the full eligibility guide.

You're filing Modelo 3. It sounds more complicated than it is.

Who needs to file

Any Portuguese tax resident with self-employment income must file. That includes freelancers issuing Recibos Verdes, people with rental income, anyone with capital gains, and anyone with income that wasn't subject to standard employer withholding.

If you became a Portuguese tax resident partway through 2025, you still file; you just declare income from the period you were resident.

Income categories: what type of income goes where

Modelo 3 divides income into categories. Knowing which category applies to your income tells you which annexes you need. The main ones for expat freelancers:

Categoria A: employment income. Salary from a Portuguese employer. Subject to withholding at source (retenção na fonte). Goes in Anexo A. Most freelancers don't have this, but if you were employed part of the year, you do.

Categoria B: self-employment income. Everything from Recibos Verdes: consulting fees, design work, writing, software development, translations. This is the main category for freelancers. Goes in Anexo B. On the simplified regime, a coefficient (typically 0.75 for services) is applied to your gross income, making 75% of it taxable. You don't itemize business expenses; the coefficient substitutes for that.

Categoria E: investment income. Dividends, interest from savings accounts, income from shares. Typically taxed at a flat 28% withholding rate. If all your investment income was already taxed at source (as it usually is for Portuguese bank accounts), you may not need to file Anexo E. The withholding is the final tax. But if you have foreign dividends or interest that wasn't withheld at source in Portugal, this goes in Anexo J instead (see below).

Categoria F: rental income. If you're renting out a property. Goes in Anexo F. Standard rate is 25% on net rental income.

Categoria G: capital gains. Property sales, gains from shares or investment funds, crypto held less than 365 days. Goes in Anexo G. Taxed at 28% flat rate (though you can opt for englobamento at progressive rates if that's lower for you (rarely is)).

Categoria H: pensions. Portuguese pensions and foreign pensions. Goes in the Rosto and may require Anexo J for foreign pensions if a treaty applies.

Categoria J: foreign income. Income earned in or sourced from another country: foreign salary, foreign pension, dividends from foreign companies, interest from foreign banks. Goes in Anexo J. This is where double taxation treaty relief is claimed. More on this below.

For most freelancers with only Recibos Verdes income: you're dealing with Categoria B only. The categories multiply when you're combining income types or have foreign-sourced income.

What you need before you start

Portal das Finanças login. Your NIF and the password you set when you registered, or Chave Móvel Digital (CMD) if you have that set up. If you've never accessed Portal das Finanças before, start there first; getting credentials sorted can take a few days.

Your invoicing record from AT. Every Recibo Verde you issued in 2025 is already in the system. Log in, go to Recibos Verdes, and you'll see your complete list. Total your gross income by category. This is your primary input for Anexo B.

Your e-fatura expenses. Professional expenses you paid in 2025, invoiced to your NIF. Before you file, log in to e-fatura and categorize any unclassified invoices; uncategorized expenses won't show up in your deductions. A few minutes here before you file changes what appears in Anexo H.

Social Security contribution records. Your quarterly SS declarations from 2025. You'll reference these when completing Anexo SS.

Last year's comprovativo, if you filed before. First year filing, you won't have one. Second year onward, your previous declaration is the fastest orientation for household setup and which annexes you need.

Filed before? Start here: Upload your previous comprovativo to the IRS declaration reader: it translates every campo into language you can actually understand, so you know exactly what was declared and where to look this year. Free, no account needed.

Your household composition. Filing alone, with a spouse, with dependents? This has to match what AT has on record. Mismatches here are a common source of errors that don't become obvious until after you submit.

Foreign income documentation, if applicable. Tax certificate from your foreign employer, bank statements showing interest or dividends received abroad, records of foreign tax already paid. You'll need these for Anexo J. Don't leave this to the last day.

The annexes you're actually filing

Modelo 3 is the container. The annexes are where the numbers go. You only complete the ones relevant to your situation.

Rosto. The cover page. Fiscal year, your NIF, household composition, which tax regime you're on (simplified or organized accounting). Fill this out first; everything else flows from it.

Anexo B. Self-employment income. For simplified regime filers, you enter your gross income and the system applies the coefficient: typically 0.75 for services, meaning 75% of your gross becomes taxable. You don't itemize expenses; the coefficient handles that assumption. For a campo-by-campo walkthrough of every quadro, see the Anexo B field guide.

Anexo SS. Social Security reconciliation. Mandatory alongside Anexo B. Every freelancer filing self-employment income needs this. It reconciles your declared income against your SS contributions for the year. Separate from the quarterly declarations you file directly with Segurança Social throughout the year. See Social Security for Freelancers in Portugal for how those work.

Anexo H. Tax benefits and deductions. Pre-filled from your e-fatura data: health, education, and property expenses associated with your NIF. Review rather than accept. Some pre-filled entries are wrong, and some things you paid for won't be there because the invoice was never validated in e-fatura. For a full breakdown of categories, deduction caps, and what "pendente" means, see the eFatura expense statement guide.

Anexo J. Foreign income. Employment income from abroad, foreign pensions, dividends or interest from foreign accounts. This is where double taxation treaty relief is declared. Covered in detail in the section below.

Anexo L. NHR or IFICI status. If you registered as a Non-Habitual Resident (before 2024) or applied for IFICI, this is where you declare it and report income under those regimes. Not sure which applies to you or how it affects your filing? See NHR vs IFICI for expat freelancers.

For most freelancers with only Recibos Verdes income: Rosto + Anexo B + Anexo SS + Anexo H. For a full breakdown of which annexes cover which income types, see the IRS annexes guide.

Foreign income and double taxation: Anexo J in practice

Portugal taxes residents on worldwide income. If you were a Portuguese tax resident in 2025, that includes income earned anywhere in the world during 2025: a salary from your UK employer before you relocated in May, or dividends from a US brokerage account you've had for years.

The mechanism that prevents you from paying tax on the same income twice is the double taxation agreement (DTA) between Portugal and the source country. Portugal has signed agreements with the UK, Germany, France, the US, and most other countries where our users have income.

How Anexo J works: You declare the foreign income by country and income category. You provide the gross amount and any foreign tax already withheld or paid. The treaty mechanism is then applied: either the income is exempt from Portuguese tax, or Portugal credits the foreign tax already paid against your Portuguese liability.

By country, here's the general picture for the most common expat source countries:

United Kingdom. Portugal and the UK have a DTA that has remained in effect post-Brexit. For most types of income (employment, self-employment, dividends), the treaty prevents double taxation. Employment income earned in the UK before you became a Portuguese resident goes in Anexo J. If the income was subject to UK tax, you declare both the income and the UK tax paid. The treaty applies on Portugal's side.

Germany. The Portugal-Germany DTA follows the OECD model. Employment income from Germany is generally taxable in Germany if the work was performed there. In Portugal, you declare it in Anexo J and claim the relevant treaty relief. Portuguese residents with ongoing German employment income should verify their specific situation with a certified accountant. The interaction between German wage withholding and Portuguese tax residency can produce unexpected results.

France. The Portugal-France DTA covers employment income, pensions, dividends, and interest. French-sourced income is declared in Anexo J. French pensions historically received favorable treatment under the old NHR regime. Under IFICI or standard rates, the treatment depends on the specific pension type and the treaty article.

United States. The US-Portugal DTA is in force. US citizens have an additional complication: the US taxes citizens on worldwide income regardless of residency. This creates a situation where both the US and Portugal want to tax the same income. The US Foreign Tax Credit (FTC) mechanism is the primary tool for avoiding actual double payment. US taxpayers generally file both a US return (using the FTC to offset Portuguese taxes paid) and a Portuguese return (declaring US-source income in Anexo J with US tax paid). Given the complexity, US citizens in Portugal almost always benefit from professional help for both filings. The US-Portugal DTA alone is not sufficient to navigate this situation.

The important thing with Anexo J: Don't leave it out. AT participates in automatic international information exchange (the EU's DAC framework covers all EU countries; FATCA covers US reporting). Income you received abroad that you assume is invisible to AT often isn't. Your declaration and their records need to match. If they don't, you'll receive a notice rather than a refund.

One practical note: proof of foreign tax paid matters. Get a tax certificate from your foreign employer, a foreign tax return copy, or bank statements showing withholding. You'll need this if AT ever requests verification, and you'll need it to claim the credit on Anexo J.

If your foreign income situation is straightforward (six months employed in Germany, then freelancing in Portugal for the rest of 2025), Anexo J is manageable with good documentation. If it's complex (multiple foreign employers, foreign property sold, US citizenship, inheritance from abroad), a certified accountant who handles expat situations is worth it for the first filing at least.

The steps

1. Log in to Portal das Finanças (portaldasfinancas.gov.pt).

2. Go to IRS → Entregar Declaração. Not IRS Automático.

3. Select year 2025.

4. Fill in the Rosto. Confirm household composition before moving on. If you're filing alone with no dependents, this is fast. If you have a family situation, make sure it matches what AT has on file.

5. Add your annexes. The interface lets you select which ones apply. For most freelancers: Anexo B, then Anexo SS, then Anexo H. Add Anexo J if you have foreign income.

6. Fill in Anexo B. For simplified regime, go to Quadro 4 and enter your gross income from Recibos Verdes. The coefficient is applied automatically. For a campo-by-campo guide, see the Anexo B field guide.

7. Fill in Anexo J if you have foreign income. Enter income by country and category. Include the gross amount and any foreign tax paid. The portal has specific fields for these. Fill them accurately. Estimated numbers carry more risk than careful documentation.

8. Review Anexo H. Check the pre-filled deductions. Add anything that should be there but isn't, assuming it was invoiced to your NIF and qualifies as a deductible expense.

9. Simulate. Before submitting, click Simular. This gives you an estimate of your tax liability or refund. If the number looks significantly wrong, go back and check your income figures and household setup before proceeding. You can also use the tax calculator to get a rough figure before you even log in.

10. Submit and save the comprovativo. The confirmation PDF is your proof of filing. Keep it somewhere accessible.

What to do with your comprovativo: Upload it to the IRS declaration reader to get a plain-language breakdown of every campo. Useful for understanding what was declared and for planning next year. Or if you'd rather file with step-by-step guidance next time instead of navigating the portal alone, create a free account. IRS filing is included.

What trips people up

Household setup mismatches. If your aggregado familiar in the declaration doesn't match what AT has registered (wrong number of dependents, outdated marital status, residency discrepancy), the calculation will be wrong. Resolve any updates before filing.

Missing Anexo SS. Required alongside Anexo B. The portal usually catches this before submission, but verify before you submit.

Leaving Anexo J out. Foreign income belongs in the declaration, even income earned before you moved to Portugal if it was during the 2025 calendar year while you were a resident. AT receives data from foreign tax authorities. Do not leave it out.

Not reviewing Anexo H. The pre-fill comes from e-fatura. If you didn't validate your expense invoices before filing, or some professional expenses were never invoiced to your NIF, they won't be in Anexo H. Worth checking.

Accepting pre-filled income without verifying. AT sometimes pre-fills income based on data from your clients. If a client reported the wrong amount, or you have foreign income AT doesn't know about, the pre-fill is wrong. What you submit is your responsibility regardless of where the number came from.

Leaving it to June. The deadline is June 30. Missing it triggers a late-filing penalty. With the window open now, there's no reason to wait.

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Frequently asked questions

When is the IRS filing deadline in Portugal? April 1 to June 30 each year. No extensions. Missing it triggers a late-filing penalty (coima) of €200 plus interest on any tax owed.

Do I need to file IRS if I issue Recibos Verdes? Yes. Any Portuguese tax resident with self-employment income (Categoria B) files Modelo 3, regardless of how much they earned. It's not optional.

What is IRS Automático and can I use it? IRS Automático is AT's pre-filled return. Since the 2024 reform it covers qualifying Cat. B freelancers (simplified regime, specific Art. 151 activity, not code 1519, no foreign income, not NHR/IFICI), not just employees. Most freelancers with foreign clients, code 1519, or NHR/IFICI status still use Modelo 3. Check your eligibility at IRS Automático para Recibos Verdes em 2026.

Which annexes do I actually need? For most simplified-regime freelancers: Rosto + Anexo B + Anexo SS + Anexo H. Add Anexo J if you have foreign income; Anexo L if you have NHR or IFICI status.

I have income from a foreign country. Do I pay tax on it twice? No, if Portugal has a DTA with that country (which it does for most major economies including the UK, Germany, France, and the US). You declare the foreign income in Anexo J, provide documentation of foreign tax paid, and the treaty applies. What you cannot do is leave it out of your Portuguese return entirely; that is a filing error even if the income was taxed abroad.

How long does it take to file? 1 to 3 hours for a simple case with accounts in order. First-time filers: 2 to 4 hours. Categorize your e-fatura expenses before you start. Stopping mid-filing to do it loses time.

What happens if I miss the June 30 deadline? A late-filing penalty (coima) of €200, plus interest on any tax owed. The longer you wait, the more interest accrues. Filing voluntarily before AT contacts you keeps you in control of the process. Full breakdown of the fine and what to do next.

Do I need an accountant? Not for a straightforward simplified-regime filing with only Recibos Verdes income. The simplified regime was designed to be self-served; the coefficient substitutes for itemized expense accounting. An accountant adds value if you have organized accounting, foreign income requiring treaty analysis, NHR/IFICI complications, or multiple income categories across several annexes. Here's a framework for deciding.

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If you want to see what last year's declaration actually said before you file again, the IRS declaration reader translates every campo into language you can actually use. And if you're still deciding whether to file yourself or hand it off, here's the breakdown of when professional help is actually worth paying for.

If you want to file with step-by-step guidance (rather than navigating the AT portal alone) the IRS filing feature walks you through every campo. And if you're curious what changed for the 2025 tax year, here's what's different.

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Related: Anexo B explained: a campo-by-campo field guide for freelancers

Related: My accountant sent me a PDF in Portuguese. I had no idea what it said.

Related: Filing your IRS in the Algarve: a practical guide for expat freelancers

Related: Understanding your Recibo Verde: what it means and how it works

Related: IRS 2025: what changed for freelancers in Portugal (and what didn't)

See also: IRS Filing Hub, all guides, tools, and reference material in one place