Individual - Deductions

Last reviewed - 31 May 2024

Employment expenses

Travel expenses and other similar payments are deductible, as long as they are necessary to produce such taxable income and comply with certain conditions established in the regulations.

Personal deductions

The taxpayer may deduct:

  • Personal expenses or in favour of their dependent family members made in the country when intended for:
    • Feeding.
    • Clothing.
    • Lease of housing, as well as the maintenance of the housing, whether owned or leased.
    • Acquisition of furniture, appliances, and household appliances.
    • Expenditure for recreational activities, provided that they are carried out in the country or have been acquired in the country, under the terms and conditions established by the tax administration.
  • Personal expenses and in favour of dependent family members made in the country and abroad when they are intended exclusively for health and education.
  • Expenditure for the acquisition of a car (every three years).
  • Personal expenditure for the acquisition of real estate, including the construction, remodelling, or refurbishment of the house under certain conditions.
  • The employer's contribution to the worker made to the Social Security System created or admitted by law or Decree-Law. Included in this concept are contributions made by independent personal service providers to a private social security system approved by law.
  • Quotas, contributions, tithes, and donations made in favour of the state and the municipalities; associations; fire brigades; cultural, artistic, sporting, social service, and charity entities, all of them provided they have legal personality; and in favour of religious entities recognised by the competent authorities. In these concepts, the deduction may be made until the limit established by the Executive Branch.

Deductions for admitted expenditure shall be conditioned on them being made with income taxed by the PIT for the fiscal year being settled or covered by income from loans from banks, savings and loan associations, or the remnant of taxable income from the previous five fiscal years.

Negative results from the expenditures provided for shall not be subject to compensation or carry forward in the following fiscal years.