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Foreign landlords owe IRS on rental income and IMI on the property itself. Knowing the rates, deadlines, and deductible expenses keeps you compliant — and keeps more of your yield.
The problem
Tax is where remote investors lose money quietly. Missed deductions, late filings, and confusion between IRS and IMI add up — and from abroad, a missed Portuguese deadline is easy to make and costly to fix.
The two taxes that matter most
- IRS on rental income — on net income; some expenses are deductible.
- IMI (municipal property tax) — annual, based on the property’s tax value (VPT).
- Electronic rent receipts — the basis for your income declaration.
- Deadlines — IRS and IMI dates are fixed; missing them triggers penalties.
Protection that’s also deductible
Insurance premiums and eligible costs are often deductible — so protecting your income can also reduce your taxable base. Ignoring deductions overpays tax every year.
Frequently asked questions
Are mortgage interest and maintenance deductible?
Several rental-related expenses are deductible against IRS rental income; keep documented receipts for all of them.
