Tax Relief in Portugal: More Money Now, But Be Ready for 2026

INLIS Consulting
Aug 8
2 min read

If you live and work in Portugal, you might notice your salary feels a bit higher in August and September. This is because of new IRS (income tax) rules from the Portuguese government.

What Changed?

The Portuguese tax office has reduced the amount of IRS (Imposto sobre o Rendimento de Pessoas Singulares) it takes from your monthly salary, especially in August and September 2025. So, your net salary (take-home pay) will be higher for these two months.

This change was made to help people spend more in the summer — a smart move to boost the local economy.

What Happens Next Year?

Even though you get more money now, it might mean a smaller IRS refund next year when you file your 2025 tax return in 2026.

In some cases, you might even owe money to the Portuguese tax authority. Why? Because you paid less tax each month, the final amount might not be enough to cover your total IRS owed.

💬 Tip: Speak with a certified accountant in Portugal to avoid tax surprises later.

Want to Become a Certified Accountant in Portugal?

Good news! If you're trying to register as a certified accountant with OCC (Ordem dos Contabilistas Certificados), the registration fees are free until the end of 2025.

This is great for students and professionals who want to join the accounting profession in Portugal but don’t have a big budget.

Capital Gains Tax on Inheritance in Portugal: What You Need to Know

If you’re dealing with inheritance property in Portugal, here’s an important tax rule:

If you sell one specific property from an estate that hasn’t been divided among heirs, you will still pay capital gains tax.
But if you sell your full share of the estate or if the entire inheritance is sold, you may not have to pay that tax.

Inheritance and capital gains in Portugal can be tricky — it’s best to check with a Portuguese tax advisor.

Final Advice

These IRS changes in Portugal might feel like a gift right now — but don’t forget to plan for the future. Make sure you:

Talk to a certified Portuguese accountant
Keep track of your IRS withholdings
Prepare for next year’s tax return

Want help with your taxes or business in Portugal? INLIS Consulting is here to support freelancers, entrepreneurs, and immigrants with clear, simple, and honest advice.