Deductible expenses for Lisbon landlords (IRS Category F)
What you can and cannot deduct against rent under Category F, with the invoice and works rules. Not tax advice.
Under Category F, IRS falls on the net income: rent minus eligible expenses. Deducting everything you are allowed, correctly, lowers the tax legally. Here is what counts, what does not, and the rules. This is not tax advice: confirm on the Portal das Finanças or with an accountant.
What you can deduct
| Expense | Notes |
|---|---|
| Condomínio | The building fee paid by the landlord. |
| Conservation and maintenance works | Repairs and upkeep, not value-adding improvements. |
| IMI | The municipal property tax on the let property. |
| Stamp duty on the contract | Paid at the start of the contract. |
| Rent or default insurance | Premiums for insurance tied to the letting. |
What you cannot deduct
| Expense | Why |
|---|---|
| Mortgage interest | Not deductible under Category F. |
| Furniture and appliances | Comfort and equipment items, excluded. |
| Value-adding improvements | Upgrades that raise the value, distinct from conservation. |
| AIMI | The additional to IMI is not deductible. |
The rules
- •The invoice must be in the landlord's name.
- •Works done up to 24 months before letting count, if the property had no other use in between.
- •Keep every receipt: no invoice, no deduction.
See the IRS + IMI guide for the rates and IMI. This article is informational and is not tax advice; confirm on the Portal das Finanças or with a professional.
Frequently asked
What expenses can I deduct against rent?
Condomínio, conservation and maintenance works, IMI, stamp duty on the contract, and rent insurance, per property and with the invoice in your name.
Can I deduct my mortgage interest?
No. Under Category F, mortgage interest is not deductible, nor are furniture, appliances or the AIMI.
Do works done before letting count?
Conservation works done up to 24 months before letting can count, if the property had no other use in that time. Keep the invoice in your name.
Own a property in Lisbon?
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