Under Category F, the landlord can deduct the expenses actually incurred and paid to obtain or secure the rent of each property, as long as they are backed by documents. Examples given by the Tax Authority (Autoridade Tributária, AT) include service charges (condominium), IMI (municipal property tax), rent insurance and conservation or maintenance works. Excluded, among others, are financial costs, depreciation, furniture, appliances, comfort or decorative items and the additional IMI.
- Anexo F (the property-income schedule of the IRS return) declares the rent and the expenses linked to each building or part of a building.
- It is not enough for an expense to be “related to the house”: it must serve to obtain or secure the income and be paid and documented.
- Conservation and maintenance works from the 24 months before the lease began can be taken into account, if the property was not used for another purpose in the meantime.
- Keep the invoice or invoice-receipt, proof of payment and the unambiguous link to the property.
Which expenses can a landlord deduct from IRS?
The official rule is functional: expenses paid to obtain or secure property income are deductible, for each property. This means the same commercial label can be treated differently depending on the real nature of the expense, the documentation and the use of the asset.
| Expense | General treatment | Recommended proof |
|---|---|---|
| IMI on the rented property | As a rule, deductible in the proportion that applies to the property and the rented period | Collection notice and proof of payment |
| Condominium fees | As a rule, deductible when borne by the owner | Condominium statement/receipt and payment |
| Rent insurance | Expressly included by the AT | Policy, receipt and identification of the property |
| Conservation and maintenance | May be deductible if they preserve the property and are linked to the income | Itemised invoice, payment and, if useful, photos/work order |
| Stamp duty on the lease | Linked to the lease; confirm the treatment in your case | Proof of assessment and payment |
| Certificates and services needed for the lease | May be accepted if they meet the general rule | Invoice with NIF and identification of the service/property |
| Works before letting | May count within the previous 24 months, with conditions | Invoices, payments and proof that the property had no other use |
Which expenses are not deductible?
The Tax Authority expressly excludes:
- financial costs, such as mortgage interest;
- depreciation of the property or of equipment;
- furniture and appliances;
- comfort or decorative items;
- additional IMI (AIMI).
Conservation and maintenance works: what counts?
Conservation and maintenance keep the property in usable condition: repairing a leak, replacing degraded plumbing, correcting the electrical installation, repainting because of wear or repairing a roof are typical examples. An extension, a structural transformation or the purchase of equipment may need different treatment.
Conservation and maintenance expenses incurred in the 24 months before the lease began can also be deducted, provided the property was not used for another purpose during that interval. Keep a simple timeline: date of the works, completion date, lease start date and evidence of use.
How to organise your expenses for Anexo F
- Create a yearly folder for each property, not just a general “expenses” folder.
- Keep the invoice or invoice-receipt issued with the correct NIF.
- Attach the proof of payment to the invoice.
- Record the date, supplier, category, total amount and property.
- Separate deductible expenses, excluded ones and those pending validation.
- For co-ownership or partial use, document the allocation criterion.
- Before submitting your IRS, reconcile rent, electronic receipts and expenses.
Rent obtained in Portugal is declared in Anexo F of the Modelo 3 return, unless a different option or classification applies, such as Category B. The Portal das Finanças states that the actual expenses incurred on rented properties must be declared, including condominium costs.
A simple example of net property income
Imagine €12,000 of rent received in a year and €2,100 of accepted, documented expenses for the same property. Before the rate is applied and without considering other tax particulars, the net property income in the example is €9,900.
To understand the rates that apply to rent, see our guide to landlord IRS. To avoid discrepancies between what you received and what you declare, also check your electronic rent receipts.
Common mistakes in Anexo F
- entering an expense against a different property from the one that generated the rent;
- keeping only a bank statement without a descriptive document;
- deducting furniture or appliances as if they were conservation;
- confusing IMI with AIMI;
- not splitting a common expense across several properties or periods;
- forgetting eligible works carried out before the lease began;
- adding amounts with VAT or withholdings without reconciling the documents.
Record rent, receipts and expenses by property in Aluseg. Instead of reconstructing twelve months in April, give your accountant an organised history.
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Frequently asked questions
Are condominium fees deductible from a landlord’s IRS?
As a rule, the condominium costs borne by the owner for the rented property can be declared. Keep the condominium document and proof of payment.
Is IMI a deductible expense in Anexo F?
IMI relating to the rented property can, as a rule, be taken into account. The additional IMI is expressly excluded by the Tax Authority.
Can I deduct works done before letting?
Conservation and maintenance expenses incurred in the 24 months before the lease began can be deducted, provided the property was not used for another purpose in that period and the expenses are documented.
Are appliances and furniture deductible?
Not under Category F, given the exclusion published by the AT for furniture, appliances and comfort or decorative items.
Which documents should I keep?
Keep the invoice or invoice-receipt, the proof of payment and anything that clearly links the expense to the property and the period declared. For works, an itemised description is especially important.
Where do I declare rent and expenses?
Property income obtained in Portugal and the related expenses are normally declared in Anexo F of the Modelo 3 IRS return, unless a different classification or option applies.
Official sources consulted: Portal das Finanças — Property Income (Rendimentos Prediais); IRS FAQ — Property Income, question 5930. Updated on 12 September 2026.
