Taxpayers with outstanding tax debts should regularise their situation with the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) or the Social Security authorities as soon as possible.
Failing to do so may lead to penalties, interest charges, or even tax enforcement proceedings.
In this article, we explain how to check whether you have outstanding tax debts and the options available to settle them.
Tax Debts: How to Check your situation with the Portuguese Tax Authority
If you have failed to comply with an obligation relating to the Portuguese Tax Authority or Social Security, you may have outstanding tax debts.
It is important to resolve the situation promptly to avoid additional costs resulting from interest and penalties.
If you are unsure whether you owe any taxes, the first step is to verify your status with the relevant authorities.
Check Online Through the Portuguese Tax Portal
Most public services are now available online, making it easy to check your tax situation through the Portuguese Tax Portal.
To do so, simply follow these steps:
- Access the Portuguese Tax Portal.
- Go to Citizens (Cidadãos) > Tax Services (Serviços) > Consult (Consultar) > Tax Enforcement Proceedings / Tax Debts (Dívidas Fiscais).
- Log in using your taxpayer number (NIF) and password.
- A list of any active tax enforcement proceedings will then be displayed.
Please note that to use this online service you must either be registered on the Tax Portal or have a valid Portuguese Citizen Card.
If you have forgotten your password or need to register for the first time, you can recover or request new login credentials through the Portal. To know more about this subject, please check this article.
Checking in Person
If you prefer, you can also obtain this information in person by visiting a local Tax Office or a Citizen Shop (Loja do Cidadão) that provides this service.
A legal representative or authorized attorney may also request this information on your behalf.
How to Settle Outstanding Tax Debts
If you confirm that you have outstanding debts with the Portuguese Tax Authority, you should arrange payment as soon as possible.
Payment can be made through online banking or at an ATM (Multibanco).
If you are unable to pay the full amount immediately, the Tax Authority may allow payment by instalments.
This is known as a monthly instalment payment plan, although late-payment interest will still apply.
Please note that instalment plans are generally only available if the debt is not already subject to judicial enforcement proceedings.
Under this system, taxpayers may generally:
- pay IRS debts of up to 5,000 € over a maximum of 12 monthly instalments;
- pay Corporate Income Tax (IRC) debts of up to 10,000 € over a maximum of 12 monthly instalments;
- pay larger debts over up to 36 instalments, provided the required guarantees are submitted.
To qualify for payment by instalments, taxpayers must also meet certain conditions established under the Portuguese debt collection rules.
These generally include demonstrating financial hardship, exceptional circumstances, or reasons of public interest.
Do Tax Debts Expire?
Yes.
Outstanding debts to the Portuguese Tax Authority may become statute-barred after eight years, subject to the legal rules governing prescription periods.
However, this does not mean the debt can simply be ignored.
Before the limitation period expires, the Tax Authority may initiate tax enforcement proceedings and seize income or assets belonging to the debtor, with the exception of the family home where legally protected.
For this reason, it is always advisable to regularise any outstanding tax debts as soon as they are identified.