Stamp duty on a Lisbon lease: who pays, how much and when
Every lease pays stamp duty. How much it is, who pays, when, and why it weighs more when you let by the room. Not tax advice.
Photo: Jakub Hałun · CC BY 4.0 · Wikimedia Commons
Every lease, and every sublease, pays stamp duty (imposto do selo). It is a small but recurring cost, especially when you let by the room, and it falls on the landlord. Here is how much it is, when it is due, and how to deduct it.
How much
Stamp duty on a lease is 10% of one month's rent, per contract (item 2 of the General Stamp Duty Table). On a €560 contract that is €56, once, at the start of the contract.
Who pays and when
The landlord pays it, together with the declaration of the contract to the tax authority (the Modelo 2), by the end of the month after the contract starts (Stamp Duty Code, art. 60.º).
The weight when you let by the room
Because it is per contract, letting by the room pays it at every new tenant. On a T5 with normal turnover it can add up to about €504 a year, against roughly €200 every three years for a whole-flat lease. It is one of the real costs of letting by the room, and worth counting in.
The good news: it is deductible
Stamp duty on the contract is a deductible expense in Category F, as long as the document is in your name. See deductible expenses on Annex F.
This article is informational and is not tax advice. Rules and rates can change; confirm on the Portal das Finanças or with a professional.
Frequently asked
Who pays stamp duty on a lease in Portugal?
The landlord, together with the declaration of the contract (the Modelo 2), by the end of the month after the contract starts.
How much is stamp duty on a rental contract?
10% of one month's rent, per contract. On a €560 contract that is €56, once, at the start.
Is stamp duty on a lease tax-deductible?
Yes, it is deductible in Category F, as long as the document is in your name.
Own a property in Lisbon?
Guaranteed rent or full management. See what yours could earn.
