Until June 30, it may be necessary to submit the Income Tax declaration of a relative who died in 2025. The death of a taxpayer does not, in itself, eliminate the obligation to declare income received up to the date of death. In many cases, this responsibility lies with the surviving spouse, widower or head of the estate. According to , late delivery may result in a fine.
The Model 3 declaration must include all income obtained by the deceased up to the day of death, whether wages, pensions, rent or other amounts subject to the IRS. The declaration may result in a refund, which will be paid to the indicated IBAN, or in a billing note, if there is tax payable.
Double head plays a central role
In addition to the IRS, there are other tax obligations after a taxpayer’s death. To ECO, Luís Nascimento, tax specialist at Ilya consultancy, explains that the head of the couple must submit the Model 1 Stamp Tax declaration, identifying the heirs and inherited assets, including any debts, by the end of the third month following the death.
This obligation is related to assets transmitted by inheritance. If the person died in June, for example, the declaration must be submitted by the end of September. João España, inspector at Broseta, highlights to ECO that the obligation exists whenever there are assets to declare in Portugal, even when close family members are exempt from paying Stamp Tax.
In Model 1, as a rule, properties, bank deposits, shareholdings, securities, credits, commercial establishments and even cryptoassets must be declared. Spouses, civil partners, children, grandchildren, parents and grandparents are exempt from the 10% Stamp Tax on free transfers. Siblings, nephews, other family members and third parties do not, as a rule, benefit from this exemption.
In the case of the IRS, the declaration must be delivered in the name of the deceased taxpayer, using their access credentials to the Finance Portal. If the deceased was married, it may be advantageous to opt for joint taxation. In this situation, the surviving spouse submits the joint declaration and identifies the deceased with the code “F”.
This option may reduce the tax or increase the refund because the deceased taxpayer may not have received income for the entire year. Even so, tax experts warn that joint taxation must be analyzed on a case-by-case basis, as it will not always be the most favorable solution.
Income generated after death no longer belongs to the deceased. They are now attributed to the heirs, the surviving spouse or the undivided inheritance, depending on the situation. If there is a rented house, for example, the rentals received up to the day of death are included in the deceased’s Income Tax, while subsequent rentals must be declared by whoever is entitled to them.
When the inheritance continues to produce income, these values must be declared by the heirs in proportion to their respective share. Therefore, before submitting the declaration, it is important to understand which income belongs to the deceased and which already belongs to the estate or heirs.
If there is tax due, the heirs may repudiate the estate, refusing both the assets and the charges. If they accept the inheritance, they also assume the associated responsibilities. Anyone who misses the IRS delivery deadline is subject to a fine that can vary between 150 and 3,750 euros. Even so, according to ECO, if the situation is voluntarily regularized within the next 30 days and before any notification from Finance, the minimum fine can be reduced to 25 euros.
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