Tax Season: Reporting Rental Income is Mandatory
29 Mar 2023
If you receive income from renting property in Portugal, you must include this in your annual tax return. Failure to report rental income to the Portuguese tax office (Autoridade Tributária e Aduaneira) can result in fines and penalties.
Mandatory Reporting of Rental Income
If you own property in Portugal and decide to rent it out, you must report this rental income to the Portuguese tax authorities, regardless of your tax residency status. This obligation applies to both short-term and long-term rentals, and it is the responsibility of the property owner to ensure the income is declared correctly.
How to Report Rental Income
Obtain a Tax Identification Number (NIF): As a property owner in Portugal, you should already have a Número de Identificação Fiscal (NIF). If you do not have one, you must apply for it at the local tax office or through a Portuguese tax representative.
Register as a Landlord: Before renting out your property, you need to register as a landlord (senhorio) with the tax office. This can be done online through the Portuguese tax authorities' website (Portal das Finanças) or in person at your local tax office.
Issue Rental Receipts: For every rental payment you receive, you must issue a rental receipt (recibo de renda) to your tenant. This can be done electronically through the Portuguese tax authorities' website or by using the pre-printed forms available at local tax offices.
Submit an Annual Income Tax Return: Rental income must be declared on your annual Portuguese income tax return (IRS – Imposto sobre o Rendimento das Pessoas Singulares). The deadline for submitting your income tax return varies depending on your tax residency status and the type of income you are reporting. Generally, non-resident taxpayers must submit their returns between April 1 and June 30, while resident taxpayers have until July 31.
Speak to one of our team about reporting your rental income in Portugal