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Portugal's 2023 Tax Regularisation Programme: What Foreign Residents Need to Know
The 2024 State Budget included a tax regularisation programme allowing taxpayers to settle outstanding obligations with reduced penalties, offering expatriates a chance to correct historical reporting gaps.
On 29 December 2023, the Diário da República published the State Budget Law for 2024, which included a tax regularisation (amnesty) programme allowing taxpayers to settle outstanding tax obligations with reduced penalties and interest. While primarily aimed at Portuguese residents, the programme was also significant for expatriates who may have inadvertently failed to report foreign income.
The programme covered undeclared IRS income, foreign bank accounts, rental income from overseas properties and capital gains. Taxpayers who voluntarily regularised their affairs within the specified period benefitted from more favourable terms.
For foreign nationals—particularly Americans, British, Canadians, Brazilians and Israelis—this measure offered a chance to correct historical reporting gaps arising from misunderstandings of Portuguese tax obligations or conflicts with foreign tax systems. The measure also aligned Portugal with broader EU initiatives emphasising cross-border tax transparency.
The programme reinforces the importance of proper tax planning for new residents and highlights Portugal’s willingness to encourage voluntary compliance.
Official source: Diário da República, State Budget Law for 2024, 29 December 2023 (https://dre.pt)