Taxpayers in Portugal face a final deadline on Monday, August 31, to pay their personal income tax and municipal property tax obligations, according to the Tax and Customs Authority.
The legal deadline applies to voluntary payments for personal income tax, known locally as IRS, as well as the second installment of municipal property tax, known as IMI. Taxpayers who submitted their IRS returns within the official filing period may still request to pay their balance in monthly installments.
To request an IRS installment plan, taxpayers must submit an application by September 15 specifying their preferred number of monthly payments. For total tax debts up to 5,000 euros, or plans up to 12 installments, taxpayers are exempt from providing a financial guarantee. For debt amounts exceeding 5,000 euros, a guarantee is legally required.
Monthly installment payments are subject to late payment interest fixed at 7.221 percent per year. This interest is calculated from the end of the voluntary payment deadline through to the month in which each payment is made.
Installment Payment Plans and Default Conditions
The Tax and Customs Authority clarified that the first installment under an approved plan must be paid by the end of the month following the plan authorization. Each subsequent installment must then be paid by the end of each corresponding month.
Tax officials warned that failure to meet agreed payment dates or amounts will result in the immediate termination of the installment plan. Once terminated, taxpayers lose the right to pay in installments unless full payment is completed prior to the official issuance of a formal debt certificate.
IRS is Portugal personal income tax, known formally as Imposto sobre o Rendimento das Pessoas Singulares, while tax collection across the country is administered by the Tax and Customs Authority.
Property Tax Deadlines and Rules
Monday also marks the deadline for paying the second installment of municipal property tax for property owners whose total annual tax liability exceeds 500 euros. Municipal property tax, known in Portugal as Imposto Municipal sobre Imóveis, is an annual levy on real estate.
The Tax Authority explained that for married couples not legally separated or cohabiting partners residing in an urban property registered as their permanent home, the 500 euro threshold applies to the total tax owed on the entire property even if it is co-owned.
Property owners paying their municipal property tax in installments will face their next collection period later in the year. The Tax Authority confirmed that collection for the third installment, or second installment depending on the case, will run from November 1 through November 30.
Debate Over Social Security Reforms
Alongside tax deadlines, political leaders have engaged in discussions over national social security policies. Prime Minister Luis Montenegro expressed a desire to reach a national understanding regarding future reforms to the social security system before the next general elections.
Montenegro rejected making changes to Portugal social security system during the current legislative term, emphasizing that major structural adjustments should wait for broader agreement.
The opposition Portuguese Communist Party criticized the government stance on social security. Party representatives stated that the government commitment not to reform the social security system during the current legislature is worth nothing.
