Portugal rental income tax calculator
Estimate the Portuguese tax on rent from a property you let in Portugal while living abroad (Categoria F). It applies the 25% rate, the reductions for long contracts and the 10% rate for moderate rents that applies from 2026, to rent minus the expenses Portugal allows.
The reductions for long contracts only apply when the lease is the tenant's permanent home. Contracts signed from 2024 with a rent above 150% of the official limits get no reduction.
Not deductible: mortgage interest, depreciation, furniture and appliances, AIMI and optional home insurance.
- Rent received
- €13,800.00
- Deductible expenses
- − €1,350.00
- Taxable income
- €12,450.00
- Tax at 10.0%
- €1,245.00
The 10% rate comes from article 45.º-C of the Tax Benefits Statute, in force from 1 January 2026. Its text does not exclude non-residents, but the tax authority has not yet published guidance on it.
Income of 2026: Modelo 3 IRS return with Anexo F, from April 1, 2027 to June 30, 2027.
An estimate under the rules in force on 9 November 2026 for income of 2025 and 2026, not tax advice. It covers long-term lets by an individual, not Alojamento Local, and assumes no tax was withheld by the tenant. Check your own case with the Autoridade Tributária.
How to use it
- 1Choose the income year and where you are tax resident, then enter the monthly rent and the months the property was let.
- 2Say what the lease is for and, for housing, how long the contract is. Add the expenses Portugal allows you to deduct.
- 3Read the rate that applies and why, the tax for the year and when to file the Modelo 3 with Anexo F.
How to use the result
25% on housing rent, for everyone
Rent from a residential lease is taxed at a flat 25%, whether the landlord lives in Portugal or abroad. Other property income, such as a garage or a shop, pays 28%. The tax is charged on rent minus the expenses the law allows.
The 10% rate for moderate rents
From 2026, rent from contracts exclusively for housing pays 10% when the monthly rent, furniture and services included, is no more than €2,300: 2.5 times the 2026 minimum wage. It was created by Decreto-Lei 97/2026, applies to income up to the end of 2029, and covers contracts already running. If another rule gives a lower rate, the lower one applies.
Lower rates for long contracts
When the lease is the tenant's permanent home, the rate falls by 10 points for a contract of 5 to 10 years, 15 for 10 to 20 years and 20 for 20 years or more. Contracts signed from 2024 lose the reduction if the rent is above 150% of the official limits, and ending a contract early takes it back.
What you can deduct
Conservation and maintenance, condominium charges, IMI, stamp duty, municipal fees, the energy certificate and compulsory or rent-guarantee insurance, paid in the year. Works paid in the 24 months before the first let can count too. Mortgage interest, depreciation, furniture, appliances and AIMI cannot be deducted.
Filing as a non-resident
You file the Modelo 3 IRS return with Anexo F online between 1 April and 30 June of the following year, marking your non-resident status. Outside the EU and EEA you need a fiscal representative, unless you sign up for electronic notifications on the Portal das Finanças.
What this calculator leaves out
Alojamento Local, which is business income. Tenants with organised accounts, who withhold tax that is then credited. The options for EU residents to be taxed at progressive rates. Contracts still on the pre-2023 reduced rates. Joint ownership. And tax in your country of residence.
Official sources
Rules checked against these sources on November 9, 2026.
- Código do IRS, artigo 72.º: taxas especiais (rendimentos prediais)
- Código do IRS, artigo 41.º: deduções aos rendimentos prediais
- Estatuto dos Benefícios Fiscais, artigo 45.º-C: arrendamento para habitação
- Decreto-Lei n.º 97/2026: limites de renda moderada (artigos 2.º e 3.º)
- DGERT: retribuição mínima mensal garantida para 2026
- Código do IRS, artigo 60.º: prazo de entrega da declaração
- Lei Geral Tributária, artigo 19.º: representante fiscal e notificações eletrónicas
Guides and workflows for the result
Use the calculation as a starting point, then examine the assumptions and carry the result into the matching PropFlow workflow.
Questions
- How much tax do non-residents pay on rent in Portugal?
- 25% on residential rent minus deductible expenses, the same as residents. From 2026 the rate is 10% when the monthly rent is no more than €2,300, and long contracts for a tenant's permanent home can get lower rates.
- Does the 10% rate apply to non-residents?
- The law does not exclude them: article 45.º-C only requires a contract exclusively for housing and a moderate rent. The tax authority has not published guidance on it yet, so keep an eye on any clarification.
- Can I deduct my mortgage interest in Portugal?
- No. Financing costs are not deductible from rental income in Portugal, and neither are depreciation, furniture or AIMI. Maintenance, condominium charges, IMI, stamp duty and compulsory insurance are.
- Do I need a fiscal representative in Portugal?
- If you live outside the EU and EEA, yes, unless you sign up for electronic notifications on the Portal das Finanças. EU and EEA residents do not need one.
- When do I file the tax return for Portuguese rent?
- Between 1 April and 30 June of the year after the income, on the Modelo 3 IRS return with Anexo F. For 2026 rent, that is 1 April to 30 June 2027.
- Is a holiday let taxed the same way?
- No. Alojamento Local is a business activity, taxed as Categoria B on part of the revenue, with its own rules. This calculator covers long-term residential lets.