Filing your Portuguese Personal Income Tax (IRS) return on time is one of the most important tax obligations for taxpayers. However, with so many deadlines and documents to keep track of, it is easy to forget or accidentally miss the submission deadline.
If this happens, you may face a number of consequences, including financial penalties. In this article, we explain what happens if you submit your IRS return after the deadline and what you should expect.
Filing your IRS Return late: Understanding the consequences
With so many deadlines to meet and documents to submit, it is not uncommon to forget or confuse the filing date and end up submitting your IRS return after the legal deadline.
If this happens, you will unfortunately have to deal with certain consequences, particularly the payment of fines.
However, not all cases are treated with the same level of severity. In some situations, taxpayers may be able to reduce the penalties imposed, especially where there has been no bad faith.
Of course, the best approach is always to file your IRS return on time and keep your tax affairs up to date. Nevertheless, below are the main consequences of submitting your IRS return late.
- Loss of tax deductions
If you fail to submit your IRS return within the legal deadline, you will lose the right to claim certain tax deductions.
This is because the right to deduct eligible expenses expires once the official filing period ends. As a result, taxpayers may lose up to 1,500 € in tax deductions.
- Inability to file a joint tax return
As we have explained in previous articles, filing a joint tax return can be more advantageous in certain situations.
However, if you submit your return after the deadline, you will no longer be able to choose joint taxation. Instead, you will be required to file separate tax returns, which may significantly increase your tax burden.
- Loss of IMI Exemption
Losing your Municipal Property Tax (IMI) exemption can be another consequence of filing your IRS return late.
Since eligibility for this exemption is determined based on your tax return, failing to submit it on time means the Portuguese Tax Authority will not recognize your entitlement to the benefit.
Depending on the amount of IMI you pay on your property, this could represent the loss of savings worth several hundred euros.
- Longer Waiting time for your tax refund
The processing of IRS refunds depends largely on when taxpayers submit their returns.
Those who file their tax returns early in the filing period generally receive their refunds sooner.
On the other hand, taxpayers who submit their returns late should expect to wait longer before receiving any refund to which they are entitled.
- Financial Penalties
ate submission of an IRS return in Portugal may result in the following fines:
- Up to 30 days late: €25 fine;
- Between 30 and 90 days late: €37.50 fine;
- Between 90 and 180 days late: €75 fine;
- More than 180 days late: €150 fine.
In addition, if you submit your IRS return after the deadline established by the Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira), you may also have to pay late payment interest on any outstanding tax.
This interest is calculated from the date the tax should originally have been paid until the actual payment date.
However, it is important to note that if you have no taxable income, or if your income is exempt from IRS, submitting your return late will not result in a fine, although it may still cause other administrative issues or inconveniences.
Do not Miss the Deadline
The final day to submit your IRS return in 2027 is 30 June.
Mark the date in your calendar and make sure you comply with this important tax obligation.