Rental Income Tax

Any income arising from renting a property located in Portugal is subject to personal income tax for non-resident individuals or corporation tax for non resident companies. As the income is generated by a property located in the Portuguese territory, it is subject to a first taxation right in the country, although it should also be declared in your country of residence.

Rental income tax for non resident individuals is levied at a flat rate of 15% for non resident individuals or companies (without a permanent establishment in Portugal such as offshore companies), after deduction of specific expenses allowed by the Inland Revenue.

The rental income tax is calculated as follows:

Gross Rental Income
- Annual Deductible Expenditures
= Taxable Rental Income
X 15%
- Withholding Tax (if applicable)
= Rental Income Tax