Portugal

Employment expenses

Union fees paid to Portuguese trade unions (in the part that does not constitute a direct contribution for health, education, elderly support, home, insurance, or social security benefits) may be deducted against employment or pension income. The deduction is 200% of total fees, up to a limit of 1% of the taxpayer’s gross employment or pension income.

Deductions against rental income

The concept of deductible expenses encompasses all the expenses effectively incurred and paid by taxpayers in order to obtain or assure rental income, excluding the financial costs, depreciation, furniture, household appliances, decorations, and comfort accessories. Regarding properties in a horizontal proprietorship, other mandatory expenses incurred by the owner of each fraction will be also deductible.

The expenses incurred in the 24 months prior to the beginning of the lease/rent, concerning repair and maintenance expenses of the property, can also be deducted, provided that during such period the property has not been used for another purpose than the lease.

Personal allowances

In Portugal, personal allowances take the form of tax credits (see the Other tax credits and incentives section for more information).