HowTytle works

As a tax resident in Portugal, you must file an annual IRS Modelo 3 declaring your worldwide income. This includes employment income (Anexo A), capital gains (Anexo G/G1), foreign income (Anexo J), freelance income (Anexo B), and rental income (Anexo F). The filing period runs from April 1 to June 30. Tytle handles all of these filings for you.

The IFICI regime replaced the classic NHR in 2024. It offers a flat 20% tax rate on qualifying Portuguese-source employment and self-employment income for up to 10 years. To qualify, you must not have been a Portuguese tax resident in the prior 5 years and must work in an eligible activity. Tytle can assess your eligibility and handle the full application.

Portuguese tax residents are taxed on worldwide income at progressive rates from 14.5% to 48%. Foreign income must be declared in Anexo J. Portugal applies tax treaties with over 70 countries to prevent double taxation, typically via the tax credit method. Under IFICI/NHR, certain foreign income may be exempt or taxed at reduced rates.

Freelancers must open their atividade (business activity) with the Finanças, issue recibos verdes (green receipts) for each payment received, file quarterly IVA (VAT) returns, and include freelance income in Anexo B of their annual IRS Modelo 3. Tytle handles the registration, invoicing setup, and all ongoing filings.

The annual IRS Modelo 3 must be filed between April 1 and June 30. Freelancers file quarterly IVA returns (by May 15, August 15, November 15, and February 15). Social security for independent workers is due monthly. IRS payments or refunds are typically processed between July and September. Tytle tracks all deadlines for you.

You are a Portuguese tax resident if you spend more than 183 days in Portugal during a calendar year, or if you maintain a habitual residence in Portugal at any time during the year. Tax residency triggers the obligation to declare worldwide income. Tytle reviews your specific situation to confirm your status.