In accordance with the provisions of paragraph 8 of Article 63-A of the general tax law, taxpayers subject to the personal income tax are required to declare in their tax return the existence and identification of deposit or securities accounts opened with a bank non-resident in Portugal, or with a branch outside Portuguese territory of a financial institution resident in Portugal, of which they are holders, beneficiaries or which they are authorised to operate. 
Life insurance contracts are not covered by this rule. The duty of communication provided for in paragraph 8 of Article 63-A of general tax law does not apply to the life insurance contract. Therefore, there is currently no requirement which obliges policyholders to declare the existence of their insurance policy in the tax return

The policyholder of a life insurance contract is subject to the following taxes in case of surrender (only the positive difference between the amounts paid for the surrender of the life insurance and the transactions and the respective premiums paid or the amounts invested is qualified as capital income (category E) is subject to tax):

• Income tax rate, or 28% on income if surrender occurs within 5 years;
• Income tax rate, or 28% of income (22.45%) if surrender occurs between 5 and 8 years;
• Income tax rate, or 28% on 40% of income (11.2%) if surrender occurs after 8 years.