The country’s government has adopted a rule designed to oblige every taxpayer to report in a declaration on the location and property of offshore companies.
This is designed to improve honesty in income reporting and to toughen the fight against tax evasion.
The bill was proposed by the Portuguese Tax and Customs Administration. It was approved during the adoption of amendments to the 2024 budget. Thus, taxpayers will be required to show all income sources when filing an IRS Model 3 return. It is mandatory to provide information on personal income taxes that exceed €500 and also on all other assets.
The service believes that they do not receive enough information about the property and financial condition of the taxpayer, and the bill will help correct this. Reports are submitted from April 1 to June 30.