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Tax Deductible Property Expenses
Tax Deductible Property Expenses
I suspect the answer is on the forum somewhere - but I have searched - honest.
Can anyone advise me on which expenses I have incurred on my property are deductible from my rental income for tax purposes? I am "non-resident"
I know that my mortgage interest isn't and that IMI, property insurance & improvements/maintenance are (if someone could confirm).
What about -
Agency fees
Condominium fees
Services (gas, electricity) for the time it was rented
Anything else?
thanks Mike
Can anyone advise me on which expenses I have incurred on my property are deductible from my rental income for tax purposes? I am "non-resident"
I know that my mortgage interest isn't and that IMI, property insurance & improvements/maintenance are (if someone could confirm).
What about -
Agency fees
Condominium fees
Services (gas, electricity) for the time it was rented
Anything else?
thanks Mike
If you are resident in Portugal you must by law declare your worldwide income in Portugal via a tax return due in March (for pensions/salaries only) or April (for incomes from rentals/investments/capital gains etc) whether they are received in Portugal or in other countries. The returns are in respect of the previous calendar year’s income.
If you are a non-resident in Portugal and own a property which is rented out, the income must be declared in Portugal even if the rentals are administered and funds received outside of Portugal. It is possible that any tax paid in Portugal could be offset against any tax due in your home country. You must also appoint a fiscal representative in Portugal to be your contact with the tax department.
Certain expenses as described below may be set off against declared rental income to reduce the tax burden which is 15% of the income. Any such expenses would have to be substantiated by the production of actual invoices and/or receipts in your name. Spreadsheets or statements of expenses are not acceptable.
The following expenses are acceptable without upper limit;
MAINTENANCE EXPENSES CONSERVATION EXPENSES
Condominium administration Repairs
Building insurance Painting
Council tax (IMI)
Utilities i.e. water, electricity, gas and telephone are not allowed.
Please note there are fines payable to the tax department if the tax returns are submitted after the deadline.
If you are a non-resident in Portugal and own a property which is rented out, the income must be declared in Portugal even if the rentals are administered and funds received outside of Portugal. It is possible that any tax paid in Portugal could be offset against any tax due in your home country. You must also appoint a fiscal representative in Portugal to be your contact with the tax department.
Certain expenses as described below may be set off against declared rental income to reduce the tax burden which is 15% of the income. Any such expenses would have to be substantiated by the production of actual invoices and/or receipts in your name. Spreadsheets or statements of expenses are not acceptable.
The following expenses are acceptable without upper limit;
MAINTENANCE EXPENSES CONSERVATION EXPENSES
Condominium administration Repairs
Building insurance Painting
Council tax (IMI)
Utilities i.e. water, electricity, gas and telephone are not allowed.
Please note there are fines payable to the tax department if the tax returns are submitted after the deadline.
Thanks.
I've done some research of my own and found this site, which refers to a Portuguese Tax Ordinance which clarifies what can be considered as "maintenance and preservation" expenses - and this appears to include maid, gardener, gas and electricity incurred whilst the property is let.
http://www.orga.pt/english/einfo_ir_ren ... ediais.htm
I've done some research of my own and found this site, which refers to a Portuguese Tax Ordinance which clarifies what can be considered as "maintenance and preservation" expenses - and this appears to include maid, gardener, gas and electricity incurred whilst the property is let.
http://www.orga.pt/english/einfo_ir_ren ... ediais.htm
Rent
Hmmmm this refers to a tax enquiry made almost 14 years ago! Things have changed a lot since then !
In our experience the taxman will not stand for those expenses against income however one can try and hope that there is no tax audit later to refuse them.
Nothing is ever that clear in taxation!
In our experience the taxman will not stand for those expenses against income however one can try and hope that there is no tax audit later to refuse them.
Nothing is ever that clear in taxation!