The deduction for donations in the 2026 Personal Income Tax (IRS) return represents a significant tax benefit for individual taxpayers who support entities with social, cultural, environmental, sports, or educational purposes. This mechanism allows for the recovery of a portion of the donated funds, acting as an incentive for patronage and philanthropy. Portuguese legislation, through the Tax Benefits Statute (EBF) and the Personal Income Tax Code (CIRS), establishes the rules for this deduction, including limits, applicable uplifts, and procedures for correct declaration. The standard deduction corresponds to 25% of donation expenses, a value that can be significantly uplifted depending on the nature of the beneficiary entity and the objectives of the donation, potentially reaching 130% or 140%. However, it is crucial to understand the overall limits and specific conditions for the correct application of this benefit.

1. Legal Framework and Principles of Donation Deduction in the 2026 IRS

The deduction for donations within the scope of Personal Income Tax (IRS) is a tax benefit enshrined in the Portuguese legal system, aiming to encourage civic participation and support for causes of public interest. This mechanism is primarily regulated by the Tax Benefits Statute (EBF), particularly its Article 63, and by the Personal Income Tax Code (CIRS), which establishes the general rules for deduction from the tax liability.

The underlying principle is the recognition that donations contribute to social well-being and the development of various vital areas, such as culture, education, health, and the environment. By allowing taxpayers to deduct part of the donated amounts, the State shares the financial burden of patronage, stimulating solidarity and social responsibility.

For the 2026 tax year (to be declared in 2027), the rules and deduction percentages remain aligned with the current legal provisions, unless specific legislative changes arise. The basis for the deduction is 25% of the value of donations, a value that can be uplifted depending on the type of beneficiary entity and the purpose of the donation, as detailed in the Patronage Statute, which is an integral part of the EBF.

It is crucial for the taxpayer to understand that the deduction is not directly from the tax payable, but rather from the IRS tax liability. This means that the deducted amount is subtracted from the amount of tax the taxpayer would have to pay after applying the IRS rates and before other specific deductions, such as those related to foreign income or temporary tax benefits. The general limit for this deduction is 15% of the IRS tax liability, as established in paragraph 1 of Article 63 of the EBF. This limit is fundamental to prevent the deduction of donations from completely nullifying the tax due, ensuring a minimum tax base.

For a donation to be eligible for deduction, it must be made to entities that possess a specific status qualifying them as beneficiaries of patronage. These entities are typically non-profit institutions that carry out activities of recognised public utility and are duly registered and recognised by the competent authorities. The communication of donations to the Tax and Customs Authority (AT) is an essential step, with the beneficiary entity being responsible for informing the amounts received from each donor, by the end of January of the year following that to which the donations relate, through Model 31 Declaration.

2. Patronage Statute: Uplifts and Specific Limits for 2026

The Patronage Statute, integrated into the EBF, is the legal diploma that details the uplifts applicable to donations, encouraging support for areas considered strategic or of greater public relevance. These uplifts allow the taxpayer to deduct a value higher than the base percentage of 25% of the donation, resulting in a more significant tax benefit.

2.1. Standard Uplifts and their Impact on Deduction

The deduction for donations can benefit from uplifts that increase the value of the donation considered for tax purposes. The main uplifts are 130% or 140%:

• 130% Uplift: Applies to donations to entities with social and cultural purposes. This means that for every €100 donated, €130 are considered for the purpose of calculating the deduction. The effective deduction on the uplifted value will be 25%.
• 140% Uplift: Applies to donations to entities with environmental, sports, educational, and scientific purposes. In this case, for every €100 donated, €140 are considered for the purpose of calculating the deduction, with an effective deduction of 25% on this value.

The following table illustrates the impact of these uplifts on a €1,000 donation:

Type of Beneficiary Entity	Applicable Uplift	Value Considered for Deduction (on €1,000)	Effective Deduction (25%)
Social	130%	€1,300	€325
Cultural	130%	€1,300	€325
Environmental	140%	€1,400	€350
Sports	140%	€1,400	€350
Educational/Scientific	140%	€1,400	€350

2.2. Overall Deduction Limits

Despite the uplifts, the overall deduction for donations in the IRS is subject to a maximum limit. Under paragraph 1 of Article 63 of the EBF, the deductible amount cannot exceed 15% of the IRS tax liability. This is a crucial limit that the taxpayer must bear in mind when planning their donations.

It is important to note that this 15% limit of the IRS tax liability is applied after the uplifts. That is, first the uplifted value of the donation is calculated, then the 25% deduction on that value, and only then is it checked whether this amount exceeds 15% of the tax liability. If it exceeds, the deduction is limited to that ceiling.

For taxpayers who opt for the simplified IRS regime, the deduction for donations is also possible, but the calculation of the tax liability and, consequently, the 15% limit may be different, as the determination of taxable income follows specific rules. However, the principle of deduction and the limits remain the same.

3. Eligible Entities for Deductible Donations

The eligibility of the beneficiary entity is a determining factor for a donation to be deductible in the IRS. It is not enough to donate to any non-profit institution; the entity must have a legal status that qualifies it to receive patronage benefits. Article 62 of the EBF and other specific diplomas establish the types of entities that fall within these criteria. The most common categories include:

• Private Social Solidarity Institutions (IPSS) and Public Utility Legal Persons: These include social solidarity associations, misericórdias, social solidarity foundations, community centres (casas do povo), social solidarity cooperatives, among others, provided they are duly recognised and registered. For example, IPSS with the status of public utility legal person (PCUP) are covered, as per Decree-Law No. 129/98.
• Non-Governmental Organisations (NGOs) with Public Utility Status: Entities that pursue general interest purposes and have obtained public utility recognition, under Law No. 3/2004.
• Cultural Entities: Museums, cultural foundations, cultural associations, and other institutions that develop activities for the promotion and defence of cultural heritage, provided they are duly accredited and recognised by the Ministry of Culture. This also includes entities dedicated to film and audiovisual production, book publishing, promotion of visual arts, music, theatre, etc.
• Environmental Sector Entities: Associations and foundations that operate in the defence, conservation, and enhancement of the environment, provided they are recognised as being of public utility or have a specific status for this purpose.
• Sports Entities: Sports clubs and associations that possess the Sports Public Utility Status (EUPD), under Decree-Law No. 248-B/98, and that promote non-profit sports practice.
• Educational and Scientific Entities: Universities, polytechnics, public and private schools with association contracts or equivalent, recognised research and development (R&D) centres, university foundations, and other institutions that promote education, scientific research, and technological innovation.
• Hospitals and Health Institutions: National Health Service (SNS) hospitals, public hospitals, and other health institutions that develop public interest activities in the health sector, including medical research.
• Churches and Other Religious Communities: Churches and other religious communities based in Portugal, legally recognised under the Religious Freedom Law (Law No. 16/2001), are also eligible entities to receive deductible donations.

It is the taxpayer's responsibility to ensure that the entity to which they intend to make the donation falls into these categories. In case of doubt, it is advisable to contact the entity or consult the lists of eligible entities provided by the competent authorities.

4. How to Declare Donations in the 2026 IRS

The correct declaration of donations in the IRS is crucial for the taxpayer to benefit from the tax incentive. The process involves the communication of donations by the beneficiary entity to the Tax and Customs Authority (AT) and the subsequent inclusion of these amounts in the taxpayer's IRS Model 3 declaration.

4.1. Beneficiary Entity's Responsibility: Model 31 Declaration

The primary responsibility for communicating donations lies with the entity that receives them. According to paragraph 3 of Article 63 of the EBF, beneficiary entities of deductible donations for IRS purposes are obliged to communicate to the AT, by 31 January of the year following that to which the donations relate, the value of donations received from each taxpayer, identifying the donor by their Tax Identification Number (NIF).

This communication is made through the submission of Model 31 Declaration – Donations Received. It is fundamental that entities comply with this obligation, as the absence of this communication may prevent the taxpayer from benefiting from the deduction, even if they have proof of the donation. The values communicated by the entity are pre-filled by the AT in the data that serve as the basis for the taxpayer's annual IRS declaration.

4.2. Filling in Annex H of Model 3 Declaration

Eligible donations are declared in Annex H of the IRS Model 3 Declaration. This annex is intended for the breakdown of deductions from the tax liability and other tax benefits. Specifically, donations are reported in Box 6B – Deductions from Tax Liability – Donations.

In most cases, the values of donations communicated by the beneficiary entities will already be pre-filled on the Tax Portal. The taxpayer must verify the correctness of this data. If there are discrepancies or donations that were not communicated by the entity, the taxpayer can add them manually, but must have the supporting documents (receipts or declarations from the entity) in case they are requested by the AT.

Each donation must be identified with the NIF of the beneficiary entity, the type of donation (social, cultural, environmental, etc.) and the donated amount. The AT, based on this information and the rules of the Patronage Statute, will automatically calculate the applicable deduction, including uplifts and the 15% limit of the tax liability.

It is important to keep all proof of donations (receipts, bank statements, entity declarations) for a period of four years, as the AT may request them to verify the eligibility and correctness of the declared amounts.

5. Special Cases and Other Considerations

In addition to the general rules, there are specific situations that deserve attention in the deduction of donations, such as in-kind donations and the eligibility of donations to political parties.

5.1. In-Kind Donations

Donations are not limited to monetary contributions. It is possible to make in-kind donations, i.e., goods or services, which can also be deductible in the IRS. According to paragraph 2 of Article 62 of the EBF, the value of in-kind donations is determined by their market value at the date of the donation. However, there are some specificities:

• Appraisable Goods: For goods such as real estate, works of art, equipment, among others, the market value must be proven by a suitable document, such as an independent appraisal or a recent acquisition invoice.
• Services: The donation of services, such as legal, accounting, or other professional services, can also be considered an in-kind donation. The value to be considered will be the market cost of these services, which must be duly documented.
• Difficulty in Valuation: In some cases, determining the market value can be complex. It is recommended that the beneficiary entity and the donor reach an agreement on the value and that this is duly formalised.
• Proof: As with monetary donations, the beneficiary entity must issue a receipt or declaration specifying the type of good or service donated, its market value, and the date of the donation. This information is essential for tax declaration.

In-kind donations are subject to the same uplifts and limits as cash donations, provided the beneficiary entity is eligible. Communication to the AT, through Model 31, must also include the market value of the goods or services donated.

5.2. Donations to Political Parties

There is often doubt about the deductibility of donations to political parties. Portuguese legislation is clear on this matter: Donations to political parties DO NOT fall into the categories of deductible donations in the IRS. Article 62 of the EBF and the provisions of the CIRS regarding donations apply exclusively to entities with social, cultural, environmental, sports, educational, or scientific purposes, of a non-partisan and non-profit nature. Political parties, although playing a relevant role in democracy, are not considered patronage entities for IRS deduction purposes.

5.3. Donations by Companies (IRC)

Although this article focuses on IRS, it is relevant to mention that companies (subject to Corporate Income Tax - IRC) can also deduct donations. The rules for IRC are similar, but with some particularities. Article 62 of the EBF also defines the uplifts for IRC, which can be 130% or 140%, and the limits may be different, generally linked to the company's turnover or its taxable profit. The deduction of donations in IRC is considered a tax-deductible expense, which reduces the company's taxable profit.

6. Practical Examples of Donation Deduction

To clarify the impact of donation deduction, we present some practical examples with numerical calculations.

Example 1: Donation to an IPSS (130% Uplift)

Taxpayer A, in 2026, made a donation of €1,500 to a Private Social Solidarity Institution (IPSS). Their IRS tax liability for the same year is €5,000.

1. Determination of the uplifted value of the donation:
   • IPSS falls into the "Social" category, with a 130% uplift.
   • Uplifted value = €1,500 * 130% = €1,950
2. Calculation of the deduction amount:
   • Deduction = 25% of the uplifted value = 25% * €1,950 = €487.50
3. Verification of the tax liability limit:
   • Limit = 15% of the IRS tax liability = 15% * €5,000 = €750
4. Final deduction:
   • Since €487.50 is less than €750, Taxpayer A will be able to deduct €487.50 from their IRS tax liability.

Example 2: Donation to an Environmental Association (140% Uplift)

Taxpayer B, in 2026, donated €2,000 to a duly recognised Non-Governmental Organisation (NGO) for environmental protection. Their IRS tax liability is €8,000.

1. Determination of the uplifted value of the donation:
   • Environmental NGO falls into the "Environmental" category, with a 140% uplift.
   • Uplifted value = €2,000 * 140% = €2,800
2. Calculation of the deduction amount:
   • Deduction = 25% of the uplifted value = 25% * €2,800 = €700
3. Verification of the tax liability limit:
   • Limit = 15% of the IRS tax liability = 15% * €8,000 = €1,200
4. Final deduction:
   • Since €700 is less than €1,200, Taxpayer B will be able to deduct €700 from their IRS tax liability.

Example 3: Donation Exceeding the Tax Liability Limit

Taxpayer C, in 2026, donated €5,000 to a Cultural Foundation. Their IRS tax liability is €3,000.

1. Determination of the uplifted value of the donation:
   • Cultural Foundation falls into the "Cultural" category, with a 130% uplift.
   • Uplifted value = €5,000 * 130% = €6,500
2. Calculation of the deduction amount:
   • Deduction = 25% of the uplifted value = 25% * €6,500 = €1,625
3. Verification of the tax liability limit:
   • Limit = 15% of the IRS tax liability = 15% * €3,000 = €450
4. Final deduction:
   • Since €1,625 exceeds the €450 limit, Taxpayer C will only be able to deduct €450 from their IRS tax liability. The excess of €1,175 (€1,625 - €450) is not deductible and does not carry forward to subsequent years.

7. Common Errors to Avoid in Donation Deduction

Although the donation deduction process is relatively simple, there are some common errors that taxpayers and entities can make, compromising the application of the tax benefit. It is fundamental to be aware of these issues to avoid problems with the Tax Authority.

1. Failure to Confirm Beneficiary Entity Eligibility: This is one of the most frequent errors. Donating to a non-profit institution does not guarantee the deduction. The entity must be legally recognised and fall within the patronage categories (IPSS, PCUP, EUPD, etc.). The taxpayer should always confirm the entity's status before making the donation.
2. Absence or Incorrect Communication by the Entity (Model 31): The responsibility for communicating donations to the AT lies with the beneficiary entity. If it fails to do so in a timely manner (by 31 January of the following year) or does so with errors (incorrect donor NIF, wrong amount), the information will not be pre-filled on the Tax Portal, and the taxpayer will have difficulties validating the deduction. It is crucial for the taxpayer to confirm with the entity that the communication has been made correctly.
3. Failure to Keep Donation Proofs: Although the AT pre-fills the data, the taxpayer is always responsible for the veracity of their declaration. It is mandatory to keep receipts or declarations from the entity proving the donation, its date, and value, for a period of four years. In case of an audit, the lack of these documents may lead to the annulment of the deduction.
4. Ignorance of the 15% Tax Liability Limit: Many taxpayers do not consider the maximum limit of 15% of the IRS tax liability. They may make significant donations, but the tax benefit will always be limited by this ceiling. It is important to estimate the IRS tax liability to get an idea of the potential benefit and avoid unrealistic expectations.
5. Confusing Donations with Membership Fees or Other Contributions: Sometimes, taxpayers confuse fees paid to associations (sports, cultural, etc.) or other contributions with donations. Fees, as a rule, are not considered donations for tax purposes, except in rare exceptions where the entity itself qualifies them as such and communicates them to the AT. A donation is a gratuitous act, a transfer without direct consideration.
6. Errors in Manual Filling of Annex H: Although the AT pre-fills most fields, some taxpayers may need to manually fill in or correct Annex H. Errors in the entity's NIF, the type of donation, or the amount may lead to the deduction being refused or the taxpayer being asked for clarification.
7. Donations to Political Parties or Ineligible Entities: As already mentioned, donations to political parties are not deductible. The same applies to donations to individuals or entities that do not have the legal status of patronage beneficiaries. It is fundamental to always verify if the entity meets the criteria defined by the EBF.

8. Conclusion: Maximising Tax Benefit and Promoting Patronage

The deduction for donations in the IRS for the year 2026 represents a valuable opportunity for individual taxpayers who wish to support causes of public interest, while benefiting from a tax incentive. Understanding the rules, limits, and procedures is fundamental to maximise this benefit and ensure its correct application.

Practical Recommendations:

1. Annual Planning: Consider your donations as part of your annual tax planning. Evaluate your estimated IRS tax liability for the year and the applicable 15% limit, in order to optimise the value of your donations.
2. Eligibility Confirmation: Before making a significant donation, always confirm with the entity whether it has the legal status that qualifies it as a patronage beneficiary for tax purposes. Many websites of social solidarity or cultural institutions indicate this information.
3. Request Proof: Ensure that the entity issues you a receipt or declaration of the donation, with your correct NIF, the donated amount, and the date. Keep these documents diligently.
4. Verification on the Tax Portal: After 31 January of the year following the donation, access the Tax Portal and verify if your donations have been duly communicated by the entities and if they are included in the pre-filled data for your IRS. In case of discrepancy, contact the entity for rectification.
5. Support Diverse Causes: By diversifying your donations across entities of different natures (social, cultural, environmental, educational), you can not only support a wider range of causes but also benefit from the different applicable uplifts.
6. Professional Consultation: In case of high-value donations, complex in-kind donations, or if you have doubts about your specific tax situation, consult a certified accountant or a tax specialist. Their knowledge can be crucial for the correct application of the rules.

Patronage is an essential pillar for the development of a more just, cultured, and solidary society. By taking advantage of the tax benefits associated with donations, taxpayers not only contribute directly to these causes but also reinforce their impact, transforming social responsibility into an act with tax returns. We encourage all taxpayers to explore this possibility and support the entities that daily make a difference in Portugal.

Call to Action (CTA): Do not let your solidarity contribution go without due tax recognition. Plan your donations, confirm the eligibility of entities, and declare correctly in your 2026 IRS. In case of doubt, seek professional support to ensure that all tax benefits are duly applied.

Sources and Legal References

• Tax Benefits Statute (EBF): Articles 62 and 63 (Patronage Regime).
• Personal Income Tax Code (CIRS): Articles 78 et seq. (Deductions from Tax Liability).
• Decree-Law No. 129/98, of 13 May: Regulates Private Social Solidarity Institutions (IPSS) and Public Utility Legal Persons (PCUP).
• Law No. 3/2004, of 15 January: Public Utility Recognition Regime.
• Decree-Law No. 248-B/98, of 17 August: Sports Public Utility Status (EUPD).
• Law No. 16/2001, of 22 June: Religious Freedom Law.
• Ministerial Order No. 30-A/2019, of 24 January: Approves Model 31 Declaration – Donations Received.
• Tax Portal (Tax and Customs Authority): Tax information and forms.