Tax on rental income - allowable expenses

[carolyn]

We own an offshore (white listed!) villa that we rent out during the summer. We are just about to embark on the annual task of the dreaded tax return, and wondered if anyone knows where there is a definitive list of what expenses can be offset against the income and what cannot (in English - our Portuguese being very limited!).

Also for a lot of our expenses we dont get 'proper' receipts, which we know is a potential problem - but how often do the tax authorities actually ask to see the receipts? Does anyone have any experience of this?

Thanks in advance!

[shanagarry]

Hi Carolyn

From our experience the authorities insist you produce receipts in the name of your offshore company. We had some of our receipts in our own name which they accepted - but not without some 'argy-bargy'.

Presumably you are using a Portugal based accountant? It's advisable.