Hi!
If you recently moved from the US to Portugal, the IRS 2025 season is open, and your Portuguese income tax return (Modelo 3) is due by 30 June. That leaves only a few weeks.
Most people accept the pre-filled return the Autoridade Tributária offers them – the IRS Automático – and assume it is correct. It rarely is. The automatic return is built for the simplest cases (employment or pension income only), and it does not chase the deductions that actually lower your bill. If your situation is anything but basic, confirming it as-is usually means overpaying.
This is where a proper review pays for itself:
- Where you live changes your rate. Mainland Portugal, Madeira, and the Azores apply different IRS rates – and the deductions available are not the same everywhere.
- Rental, investment, and capital-gains income each follow their own rules. Declared correctly, rental income qualifies for real reductions; declared wrong, you lose them.
- Pensions and US income must be handled under the right treaty and category – a common and costly area to get wrong.
- Self-employed (Category B) income and the NHR / IFICI regime open planning opportunities the automatic return ignores entirely.
- Foreign income and crypto carry separate reporting (Anexo J and Portugal’s new crypto rules) with their own penalties if missed.
And the deadline is not one to test. The automatic return is not eligible for the self-employed, landlords, or those with foreign income – and miss the 30 June filing and a penalty starts at €150 even if you owe nothing, climbing from there.
We prepare Portuguese returns that are reviewed line by line, not rubber-stamped – so you claim every deduction you are owed and file with confidence before the window closes.
Reply to this email by Monday and let us know if you’d like us to prepare your Portuguese taxes or have an advisory session to cover all your questions with our Portuguese preparer and review your situation while there is still time to file properly.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com