Tax Deductions for Dependents in Portugal: What You Need to Know to Optimise Your Tax Return

  1. Who qualifies as a dependent in Portugal?

For tax purposes, the following are considered dependents:

  • Children, adopted children and stepchildren who are minors and not emancipated
  • Young people up to age 25 who do not earn above the legal income threshold
  • Dependents with a disability degree ≥ 60%, regardless of age
  • Civil godchildren

They must be part of the household and properly identified in the Modelo 3 tax return, namely in section 6B.

  1. Fixed deductions per dependent

The Portuguese tax system provides automatic tax credits per dependent:

  • €600 per dependent
  • €300 per parent in cases of shared custody
  • Important increases:
    • +€126 per dependent up to age 3
    • +€300 for the second dependent (and onwards) up to age 6

These deductions are automatically applied by the Tax Authority after submission.

  1. Other deductions related to dependents

In addition to fixed deductions, several expenses increased tax benefits:

General family expenses

  • 35% of expenses up to €250 per taxpayer

Education and training

  • 30% up to €800 (or €1,100 in specific cases such as displaced students)

Healthcare

  • 15% up to €1,000

Housing

  • 15% of rent up to certain limits

These deductions are declared in Annex H of Modelo 3, and many are already pre-filled based on the e-fatura system.

  1. Special situations to consider

Shared custody

  • Deductions are split between parents
  • The dependent can only belong to one household, but benefits may be shared

Dependents with disabilities

  • Higher tax benefits
  • Possibility of additional deductions for specific expenses

Joint vs separate taxation

  • Can impact the use of deductions
  • Should be analysed on a case-by-case basis
  1. How to correctly complete Modelo 3

To ensure you do not miss tax benefits:

  • Correctly identify all dependents in section 6B
  • Confirm pre-filled data in Annex H
  • Validate expenses in e-fatura before submission
  • Assess the best option between joint or separate taxation

A simple mistake can lead to losing hundreds of euros in deductions.

Conclusion

Dependent-related tax deductions in Portugal represent a significant opportunity to reduce household tax burdens. However, to fully benefit, it is essential to understand the rules, validate information, and correctly complete the Modelo 3 tax return. Professional support can make a substantial difference in the final tax outcome.

How Nominaurea can help

Nominaurea has a specialised tax team that:

  • Analyses your family and tax situation
  • Ensures correct classification of dependents
  • Maximises all available legal deductions
  • Submits your tax return accurately and securely

Avoid mistakes and maximise your refund with professional support.