Knowing what a household is for finances is very important, as it has an impact on taxes and fees paid by the family in favor of the Portuguese state.

Everyone who resides in Portugal for more than 180 days must file a household declaration. The same thing applies to those who earn income in Portugal.

On the other hand, the aggregate changes when we are talking about social security. That is, it is different from the group's definition of finance.

Continue reading and see in the items below how this issue works and how to make the household declaration!

The household, in general terms, corresponds to the family that resides together, that is, in the same residence.

However, it does not include all people who reside together. This then depends on the age group, the ability to provide services and the degree of kinship.

See how households are formed for finances:

Therefore, the household only considers spouses and dependents, who may be adopted, blood or stepchildren.

This means that when there is an income tax declaration it is possible to make a single declaration, which will include all these members and can generate tax deductions.

However, it is important to highlight that children up to a certain age or who have certain conditions enter the household. See what they are:

Furthermore, ascendants, as well as brothers, cousins, uncles and other types of family members are excluded from the household for finances.

As previously stated, the household for finance is different from the household for social security. Each of them has its own characteristics.

In the case of social security, more people are included. In other words, there are not as many limitations as in the case of finances.

It is Decree 70/2020 that currently determines who the members of the household are in social security. See what they are:

In order for them to be part of the same household, it is essential that the individuals live in the same place, together.

Furthermore, note that siblings, children, parents, grandparents, etc. are considered here. Therefore, the role is much larger than that present in finance.

Each household has its own characteristics. In general, the aggregate in finance is more limited, as it excludes ascendants and other relatives.

Furthermore, in the case of finances, the aggregate considers the age group. In other words, if the child is of legal age (or 25 years old) and has the capacity to work.

For social security, this is not important. Children are considered to be from the same household even if they are over 18 years old.

Likewise, relatives of up to 3rd degree are considered, which greatly increases the list. To be considered on the same list, it is enough to have joint residence.

It is very simple to report your household for IRS purposes. Check out the quick and easy step-by-step guide and don't miss the annual deadline to file the declaration!

Also, be aware that any change in the composition of the family that resides together must be communicated to the authorities for income tax declaration purposes.

Therefore, annually there is a deadline for communicating changes (whether additions or reductions) in the household for finances.

The deadline is always open between January 1st and February 15th, with 45 days for communication to take place.

If it does not occur in time, the citizen will not be able to make use of the automatic IRS regime, which forces them to complete the tax return manually.

However, it is possible to correct the absence of a household declaration in the IRS declaration itself, which must be done manually and by recording various data.

Because this brings a series of benefits to you. Firstly, because it allows you to use automatic IRS declaration, which saves you time.

Furthermore, because this means it is possible to obtain an IRS refund sooner, as if there were a priority in the queue.

Furthermore, because it allows the citizen to obtain exemption from IMI, as well as user fees or social tariffs, as is the case with the one applied to the supply of electricity.

And, if you want to continue browsing our website, also see our content on Direct Social Security! This is an important communication channel for Portuguese citizens. Click below and check it out!