Thinking of ceasing your tax residency in Portugal? Whether it's for a new adventure or a change in personal circumstances, it's essential to follow the correct steps to ensure a smooth transition. Here's a detailed guide to help you through the process.
Determine the Date of Departure
You need to establish the exact date when you will cease to be a tax resident in Portugal. This date is crucial as it will mark the end of your tax obligations in the country. Make sure to keep all relevant travel documents and records to substantiate your departure date.
Notify the Tax Authorities
Submit a formal notification to the Portuguese tax authorities (Autoridade Tributária e Aduaneira) regarding your intent to cease tax residency. This is typically done through the submission of a 'Modelo 3' tax return with the appropriate boxes ticked, indicating your change in tax residency status.
File a Final Tax Return
Prepare and file your final tax return, covering the period from the start of the tax year up to your departure date. Ensure that all income earned during this period is accurately reported and that you settle any outstanding tax liabilities.
Close or Update Bank Accounts
If you have Portuguese bank accounts, you may need to either close them or update your residency status with the bank. This will help prevent any confusion regarding your tax status and ensure that your financial affairs are in order.
Deregister from Social Security
Inform the Portuguese Social Security Institute (Instituto da Segurança Social) of your departure. This step is crucial to cease your social security contributions and to clarify your status for any future claims or entitlements.
Inform Other Relevant Institutions
Notify other relevant institutions, such as your local municipality and healthcare providers, about your departure. This helps ensure that your records are up-to-date and that you do not receive unnecessary bills or communications.
Retain Documentation
Keep all documents related to your cessation of tax residency, including correspondence with tax authorities, final tax returns, and proof of notifications to various institutions. These documents may be required for future reference or in case of any disputes.
Legal References
- Portuguese Personal Income Tax Code (Código do IRS)
- Decree-Law No. 398/98, of 17 December
Useful Links
