Non-residents with Portuguese income or property should retain documents supporting their tax declarations. The required records depend on the type of income, property activity or transaction involved.

Rental property owners need records of rent received and eligible expenses. Property sellers should also retain acquisition documents, improvement invoices and costs connected with the sale.

What Tax Records Should Non-Residents Keep in Portugal?

Non-residents should retain the main documents supporting their Portuguese tax position, including:

• Portuguese tax returns and annexes
• tax assessment notices
• tax payment confirmations
• invoices and receipts supporting deductible expenses
• rental agreements and rental receipts
• property purchase and sale documents
• records of renovation and improvement costs
• relevant bank statements
• correspondence with the Portuguese Tax and Customs Authority (AT)

The documents should allow each figure reported to the AT to be traced back to its underlying transaction or payment.

Which Records Should Non-Resident Landlords Keep?

Non-resident landlords should keep documents covering both rental income and property expenses.

Important records include:

• rental contracts and amendments;
• rental receipts;
• records of rent received;
• bank statements showing rental payments;
• property management statements;
• maintenance and repair invoices;
• condominium expense records;
• IMI payment records;
• qualifying property improvement invoices.

Portuguese rental income records should clearly connect the amount received with the relevant property and tenancy.

Should Landlords Keep Rental Receipts?

Yes. Keep rental receipts with the corresponding tenancy agreement and proof of payment.

Portuguese landlords must issue electronic rental receipts for relevant rental payments, including certain deposits and advance payments.

Which Property Expense Records Should Be Kept?

Non-resident property owners should retain invoices and other supporting documents for expenses claimed against Portuguese rental income.

Depending on the circumstances, relevant records can include:

• maintenance and repair invoices;
• condominium charges;
• IMI records;
• Stamp Duty records;
• property insurance documents;
• qualifying conservation expenses.

An invoice should identify the service or goods supplied, the amount paid and the property or transaction to which the expense relates.

A bank statement alone does not normally provide the same level of information as an invoice or equivalent supporting document.

What Records Should Be Kept When Selling Portuguese Property?

A property owner should retain documents showing the property's acquisition cost and qualifying costs incurred before its sale.

Relevant records include:

• purchase deed;
• evidence of the acquisition price;
• IMT payment records;
• Stamp Duty records;
• land registry and notarial costs;
• estate agency invoices;
• legal and professional fees;
• qualifying improvement invoices;
• sale agreement;
• completion documentation.

You may need these records to establish the figures used when calculating a Portuguese property capital gain.

How Long Should Renovation Invoices Be Kept?

Renovation and improvement invoices should be retained for the period during which they may affect a future property sale.

Portuguese rules allow certain qualifying improvement expenses incurred during the 12 years before a property sale to be considered when calculating the gain.

For this reason, do not discard invoices for substantial improvement work after you file the tax return for the year of the renovation.

Should Non-Residents Keep Bank Statements?

Yes. Bank statements can support evidence of rental income received, property expenses paid and other transactions reported for Portuguese tax purposes.

They should be retained alongside the relevant invoice, rental receipt, contract or other document explaining the payment.

What Records Should Non-Residents Keep for Portuguese Tax Returns?

Non-residents who file Portuguese tax returns should retain:

• submitted Modelo 3 returns;
• relevant annexes;
• tax calculations;
• assessment notices;
• payment confirmations;
• certificates issued by the AT;
• correspondence relating to the return.

Keeping the submitted return together with its supporting documents makes it possible to establish how the declared figures were calculated.

Should Non-Residents Keep Records of Foreign Tax Residence?

Yes, when foreign tax residence is relevant to their Portuguese tax position.

A foreign tax residence certificate can provide evidence that an individual was tax resident in another country during a particular period. Such documentation can also be relevant when applying a double taxation agreement.

Non-residents should retain the certificate for the relevant tax year rather than relying only on their foreign address.

What Records Are Needed for Foreign Income or Tax Paid Abroad?

Where foreign income or tax paid outside Portugal is relevant to a Portuguese tax matter, supporting documentation from the foreign tax authority should be retained.

This can include:

• foreign tax residence certificates;
• foreign tax returns;
• certificates of tax paid;
• statements showing foreign income;
• documents identifying the amount and nature of the income.

The supporting documents should clearly identify the income concerned and the tax paid in the foreign jurisdiction.

What Records Should Self-Employed Non-Residents Keep?

Non-residents carrying out professional activities in Portugal should retain documents supporting both business income and expenses.

These can include:

• invoices issued to clients;
• receipts;
• service contracts;
• expense invoices;
• professional agreements;
• bank statements;
• tax returns;
• tax payment records.

The records should allow professional income declared to the AT to be reconciled with invoices issued and payments received.

How Long Should Portuguese Tax Records Be Kept?

No single retention period applies to every Portuguese tax document.

The appropriate period depends on the type of tax, transaction and document. Property records require particular care because acquisition and improvement documents can remain relevant when the property is eventually sold.

For Portuguese property, you may need to retain records beyond the year an expense was incurred.

Does Fiscal Representation Affect Tax Records for Non-Residents?

Fiscal representation and record-keeping are separate matters, but a fiscal representative can assist a non-resident with Portuguese tax administration.

This can include communication with the AT and administrative matters connected with Portuguese tax obligations. Fiscal representation in Portugal is relevant to non-residents who manage their Portuguese tax affairs from abroad.

The records themselves remain important because the taxpayer must be able to support the income, expenses and transactions reported to the Portuguese authorities.

What Should Non-Residents Keep for a Portuguese Property?

For a property owner, the core file should contain:

Acquisition

• purchase deed;
• acquisition price;
• IMT;
• Stamp Duty;
• registration and professional costs.

Ownership

• IMI records;
• condominium documents;
• insurance;
• maintenance invoices;
• qualifying improvement invoices.

Rental

• tenancy agreement;
• rental receipts;
• rent payment records;
• property management statements.

Sale

• sale agreement;
• estate agency invoice;
• legal and professional costs;
• completion documents.

Keeping these records together preserves the evidence needed to establish the property's tax history from acquisition through to sale.

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