Completing the correct IRS tax return annexes is essential to ensure your annual tax return is submitted accurately and to avoid unnecessary delays, corrections, or penalties.

Although filing an IRS return is an annual obligation for many taxpayers in Portugal, it is common to have questions about which annexes apply to your situation and what information each one requires.

In this guide, we explain the purpose of each IRS annex and when it should be completed, helping you navigate the Portuguese tax return process with confidence.

IRS Tax Return Annexes: Everything you need to know

Taxpayers who qualify for Automatic IRS (IRS Automático) generally have a simpler filing process, as much of the information is pre-filled by the Portuguese Tax Authority (Autoridade Tributária e Aduaneira – AT).

However, if you are not eligible for Automatic IRS, you will need to complete the Model 3 (Modelo 3) tax return manually, selecting the annexes that correspond to your sources of income and personal circumstances.

Below is an overview of each section.

The Cover Sheet (Modelo 3)

The cover sheet is the first part of the tax return and must be completed by all taxpayers.

It includes essential information such as:

• identification of the taxpayer(s); 
• household composition; 
• marital status; 
• whether the return is filed jointly or separately; 
• other general tax information. 

This is also where you can choose to allocate part of your IRS to an eligible charitable, cultural, environmental or religious organisation through the Portuguese tax allocation scheme (consignação do IRS). If you want to know more about this subject, please check this article.

Annex A – Employment and Pension Income

Annex A is used to declare:

• employment income (Category A); 
• pension income (Category H). 

All employment and pension income received by members of the household included in the tax return should be reported here.

Annex B – Self-Employment Income (Simplified Regime)

Annex B is intended for taxpayers earning business or professional income (Category B) who are taxed under:

• the simplified tax regime; or 
• isolated acts (ato isolado). 

Unlike Annex A, Annex B is completed individually.

Each taxpayer earning self-employment income must submit their own annex, even when spouses file a joint tax return.

Annex C – Self-Employment Income (Organised Accounting)

Taxpayers carrying out a business or professional activity under the organised accounting regime must complete Annex C.

Like Annex B, this annex is completed individually.

Annex D – Tax Transparency

Annex D is intended for taxpayers who have been allocated taxable income under Portugal’s tax transparency regime.

This typically applies to partners or shareholders in certain transparent entities, as defined by Portuguese tax legislation.

Annex E – Investment Income

Annex E is used to declare investment income (Category E) that may be subject to withholding tax or special tax rates.

Examples include:

• • bank interest; 
  • term deposits; 
  • current account interest; 
  • financial insurance products; 
  • dividends; 

• other investment income. 

Annex F – Rental Income

Taxpayers receiving income from property rentals (Category F) must complete Annex F.

This includes rental income derived from residential, commercial or other real estate located in Portugal or, where applicable, abroad.

Annex G – Capital Gains and Other Capital Increases

Annex G is used to declare:

• capital gains; 
• capital losses; 
• other taxable increases in wealth.

Typical situations include:

• the sale of real estate; 
• the sale of shares or securities; 
• certain transfers of assets. 

The sale of property must always be declared, even if no tax is ultimately payable.

Annex G1 – Exempt Capital Gains

Annex G1 is used to report capital gains that are exempt from taxation.

The annex covers exempt gains earned by any member of the household included in the tax return.

Annex H – Tax Benefits and Deductions

Annex H is probably the best-known IRS annex.

It includes:

• tax deductions; 
• tax credits; 
• tax benefits not automatically included by the Tax Authority. 

Depending on your circumstances, this annex may include deductions relating to:

• healthcare expenses; 
• education expenses; 
• housing costs; 
• nursing home expenses; 
• general family expenses; 
• other deductible items provided by law. 

Annex I – Undivided Inheritance Income

Annex I is only completed together with Annex B or Annex C.

It is used to declare Category B income generated by an undivided inheritance, as reported by the estate administrator (cabeça de casal).

The income is then allocated among the heirs according to their respective ownership shares.

Annex J – Foreign Income

Annex J is used to declare income earned outside Portugal that must be reported to the Portuguese Tax Authority.

This may include:

• foreign employment income; 
• foreign pensions; 
• overseas rental income; 
• foreign investment income; 
• capital gains realised abroad. 

Annex L – Non-Habitual Residents

Annex L is completed individually and applies exclusively to taxpayers who benefit from the Non-Habitual Resident (NHR) tax regime or any transitional regime that remains applicable under Portuguese law.

It is used to declare income eligible for the specific tax treatment provided under that regime.

Annex SS

Annex SS is submitted to the Portuguese Social Security system and is mandatory for certain self-employed workers who meet all of the following conditions:

• they provide services to companies or self-employed business clients (rather than private individuals); 
• they are required to contribute to Portuguese Social Security as self-employed workers; 
• their annual income from services is at least six times the IAS (Social Support Index) (for 2026, this threshold is 3,222.78 €); 
• 50% or more of their annual service income comes from a single client. 

This information allows Social Security to determine whether the contracting entity has any contributory obligations towards the self-employed worker.

Conclusions

Understanding the purpose of each IRS annex is essential for completing your Portuguese tax return correctly and ensuring that all sources of income, deductions and tax benefits are properly reported.

Selecting the wrong annex – or failing to submit one that applies to your situation – can lead to delays, requests for clarification from the Tax Authority, or even penalties.

If you are unsure which annexes apply to your circumstances, consulting a certified accountant is the safest way to ensure your IRS return is accurate and fully compliant with Portuguese tax legislation.