Landlord IRS: Category F and how to declare it
Where and when to declare rent, which rate applies, and how to deduct expenses on Annex F. Not tax advice.
Rent you receive is taxed under IRS Category F (rendimentos prediais). You declare it on Annex F, and the tax falls on the net income after eligible expenses. Here is how. This is not tax advice: confirm your case with an accountant or on the Portal das Finanças.
When and where
For rent received in a year, file Annex F with your IRS return by 30 June of the following year. For each property you enter the amounts received and the deductible expenses.
Which rate
The autonomous rate is 25% for residential lettings, but since 2026 rent from housing contracts up to €2,300 a month is taxed at 10% (Decree-Law 97/2026, article 45.º-C of the EBF, 2026 to 2029). Alternatively you can opt for aggregation (englobamento) under the progressive rates, which usually only helps at low incomes. Full detail in our IRS + IMI guide.
Deducting expenses
On Annex F you deduct the expenses paid to earn or maintain the income, per property and with the invoice in your name: condomínio, conservation and maintenance works, IMI, stamp duty on the contract, and rent insurance. Mortgage interest, furniture and appliances, and the additional to IMI (AIMI) are not deductible.
Non-residents and companies
Non-residents declare the same way on Annex F, and may need a fiscal representative. Flats held in a company are taxed under IRC, not Category F. When in doubt, an accountant is worth the fee.
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
When is Annex F due?
By 30 June of the year after you received the rent, filed with your IRS return.
What IRS rate do I pay on rent?
The general autonomous rate is 25% for housing, but since 2026 rent from housing contracts up to €2,300 a month is taxed at 10% (DL 97/2026, EBF 45.º-C). You can opt for aggregation if you are on a low income.
What expenses can I deduct on Annex F?
Expenses paid to earn or maintain the income, per property and invoiced in your name: condomínio, conservation works, IMI, stamp duty on the contract, and rent insurance. Mortgage interest, furniture and AIMI are not deductible.
I am a non-resident, how do I declare?
The same way, on Annex F, possibly needing a fiscal representative. If the property is held by a company, it is taxed under IRC, not Category F.
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