Did you know that you can choose to give 0.5% of your income tax in Portugal to a good cause, without it costing you anything extra? Whether you're getting a Tax refund or owe more tax, this donation won't cost you a cent but it can help a cause of your choice.
Every year the Portuguese Tax Authority allows you to allocate a part of the annual IRS tax you owe and donate it to organizations and charitable causes in Portugal, including those focused on social causes, the environment, religion or culture. The choice is yours.
The list of eligible recipients is updated annually, and there are more than 4,500 currently approved to receive donations through this program, all of which are listed on the Portuguese Finance Portal.
How to donate part of your IRS Tax in Portugal
There are two ways you can make this charitable donation: before filing your taxes, or when you do file them.
To donate before submitting your annual IRS Tax return (dealine: March 31, 2024):
Go to the Portuguese Tax Portal (e-fatura website: https://faturas.portaldasfinancas.gov.pt/) and log in with your credentials.
Look for the option to choose an organization to donate to and select "Entidade a Consignar".
Pick the charity or organization you want to support by entering their tax number (NIPC - Número de Identificação de Pessoa Colectiva, which is the tax identification number for companies in Portugal).
If you're not sure who to pick, there's a search tool to help you decide (click on the magnifying glass icon).
Confirm your choice by clicking "submeter".
To donate during your 2023 IRS tax submission (between April 1st and June 30, 2024):
On your tax form (Modelo 3), fill in box 11 with the details of the organization you want to support.
You must identify the type of organization you wish to help: you can choose from private solidarity institutions (IPSS), religious groups, public organizations (like environmental NGOs), or cultural associations.
Fill in their tax number.
And, also, specify what type of donation you're making (you can choose to donate part of your income tax, VAT, or both taxes).
Allocating 0,5% of your IRS tax in Portugal is voluntary, which means you are not required to do so when submitting your annual income tax return.
However, by taking these simple steps (or asking your Accountant in Portugal to do this for you), you can support a cause in Portugal you care about at no extra cost to you.
