Landlords who rent to students hear the question before the signing: “can the family deduct the rent from their income tax?” They can, within limits, and the deduction only works if the landlord’s contract and receipts are what the law asks for.
This guide explains the displaced-student rule and the part that falls to the landlord. It is part of our tax guides.
The essentials in 30 seconds
- The family deducts 30% of the rent the student pays, up to 400 euros a year (art. 78-D of the IRS Code, CIRS).
- The student must be 25 or under and study more than 50 km from the family's permanent home.
- The student must be the tenant, and the rent receipt must say it is a displaced-student tenancy.
- The electronic receipt can only be issued once the contract is registered with the Tax Authority (Modelo 2).
Who can deduct and how much
Under article 78-D of the CIRS and the Tax Authority leaflet “Arrendamento a Estudante Deslocado”, the rent of a displaced student counts as an education expense. The deduction is taken from the household’s IRS.
| Condition or amount | Rule |
|---|---|
| Student’s age | 25 at most |
| School | Part of the national education system, more than 50 km from the household’s permanent home |
| Deduction | 30% of documented rent |
| Cap on rent | 400 euros a year |
| Overall cap on education expenses | 800 euros, plus 300 euros when the difference relates to rent (1,100 euros) |
In practice, the 400 euro cap is reached with about 1,333 euros of rent a year. A room at 400 euros a month for 9 months (3,600 euros) goes past that, so the deduction stops at 400 euros.
For the same property, the rent deduction cannot be combined with the deduction for property expenses in article 78-E of the CIRS.
What the landlord must do for the deduction to work
The Tax Authority requires the student to be the tenant (or sub-tenant) under a contract signed as a “displaced student” tenancy, and to receive a payment document saying so. The landlord’s part comes down to five points.
- A contract in the student's name, with their tax number (NIF), and the reason (education and training) written in. For stays under 1 year, see the [temporary lease agreement](/en/temporary-lease-agreement-portugal/).
- The contract reported to the Tax Authority with Modelo 2, by the end of the month after it starts. This is what lets you issue the electronic receipt. The guide is in [registering a lease at Finanças](/en/registering-a-lease-agreement-at-financas-2026-guide/).
- An electronic rent receipt for each payment, stating that the tenancy is for a displaced student. See the [electronic rent receipt guide](/en/issuing-an-electronic-rent-receipt-tax-authority-portal-guide/).
- Rent paid by a traceable method. The Tax Authority advises avoiding cash payments that cannot be proven later.
- If you are exempt from the electronic receipt (for example, because of age), the payment document must say it relates to a displaced-student tenancy, and you file Modelo 44.
Check on the Portal das Finanças how the displaced-student mention is recorded on the receipt you issue. If a landlord issues an invoice-receipt instead of a rent receipt, the Tax Authority requires CAE code 68200 and that the invoice be reported.
What the family and the student must do
To be clear with the parents, explain these steps, which are theirs and not the landlord’s:
- “Registo de Estudante Deslocado” on the Portal das Finanças, done by the student, stating the household’s parish of residence and the period away, which cannot exceed 12 months. It is repeated every year.
- Ask for the rent receipt at every payment and keep it.
- State on the Portal, by the end of February of the following year, that the reported invoices relate to displaced-student rent (art. 78-D(11) of the CIRS).
The student does not need to change the address on their Citizen Card.
What this changes for you, the landlord
For the landlord the tax does not change: rent is still category F income, at the flat rate of 25%, as our guide to landlord IRS explains. The difference is proof: a correct contract and receipts make your property easier to rent to families counting on the deduction.
If you rent by the room, each student has their own contract and receipts. See renting a room, the reference figures for Lisbon and Porto, and the full guide to renting to students. The framework for short contracts is in short-term leases.
Frequently asked questions
How much can be deducted from IRS for a displaced student's rent?
30% of documented rent, up to 400 euros a year. The overall cap on education expenses is 800 euros, increased by 300 euros when the difference relates to rent, which makes 1,100 euros.
Who counts as a displaced student?
A member of the household aged 25 or under who attends a school in the national education system more than 50 km from the household's permanent home.
Can the parents be the tenants?
According to the Tax Authority leaflet, the contract should be one in which the student is the tenant or sub-tenant. If the family is thinking of signing in the parents' names, check with the Tax Authority or an accountant before signing.
Does the landlord have to issue an electronic receipt?
Yes, in most cases, and the receipt can only be issued once the contract is registered with the Tax Authority. The receipt should state that it is a displaced-student tenancy. Landlords exempt from the electronic receipt file Modelo 44.
Does the student have to report anything to the Tax Authority?
Yes. On the Portal das Finanças, under "Registo de Estudante Deslocado", they state the household's parish of residence and the period away (12 months at most), every year.
Sources: CIRS, art. 78-D (deduction of education and training expenses); Tax Authority leaflet “Arrendamento a Estudante Deslocado” (January 2024, in Portuguese); CIRS, art. 31.
Note: informational article, not legal advice. Always confirm the current conditions with a professional.
