Turn your IRS (Portugal's personal income tax) into a planned operation — not an annual surprise
In 4 min you'll know: how to maintain a tax calendar with every deadline and front-load deductions in January
In Block 2, Lesson 6 we organised your tax documentation. In Block 1, Lesson 7 you learnt the basics of . Now we are going to transform the IRS from an annual panic event into a planned, year-round operation. The rule: keep a tax calendar with all deadlines and anticipate your deductions in January — not in April.
Before you continue: in Block 2 you built a fiscal calendar — how does organising your tax year translate into a more efficient IRS return?
(Answer in the next paragraph.)
The IRS is not a tax you settle in May. You settle it over the preceding 12 months. Every invoice you log in the (the official tax-invoice tracking portal), every healthcare expense receipt, every (retirement savings plan with tax incentives) contribution, every donation, every insurance premium — it all counts towards the final calculation. If you did not register expenses in the eFatura during the year, you cannot deduct them in May. The tax calendar starts in January with the advance-payment request (if applicable), runs through monthly invoice validation in the eFatura, and ends with filing the return in April–May.
The specific IRS deductions most people are unaware of: (1) PPR — up to 20% of contributions, capped at €400 (single filers) or €800 (couples); (2) health expenses — 10% of the total capped at €1,000, but only if not reimbursed by insurance; (3) housing costs — 15% of rent or mortgage payment, up to €600, for young people up to age 35 (IRS Jovem); (4) donations — 25% of the amount donated to recognised institutions; (5) alimony — uncapped, deducted in full. Each of these deductions requires timely documentation and registration.
The IRS Jovem (Lei n.º 24-D/2022) is a scheme that partially exempts dependent-employment income from IRS for young people up to age 35, with an exemption bracket that decreases over 5 years. If you are under 35 and a dependent worker, this scheme can save you hundreds of euros per year — but you must select it on your IRS return; it is not automatic. The eFatura is your central tool: validate invoices every month, categorise expenses correctly (health, education, housing) and check the deductions panel before submitting your return.
Set up your advanced fiscal calendar with anticipation (3 min) →
Your promise: Next month, the 1st at 10am, I will anticipate all tax deductions and fill in the calendar through December.