Freelancers and landlords in Portugal can reduce their tax bill through specific deductions. Here are the essential rules for IRS deductions.
What Are Specific Deductions?
Specific deductions are allowances subtracted from the taxpayer's gross income, effectively reducing the IRS tax base and potentially lowering the tax payable or increasing the refund.
Freelancers (Category B)
Self-employed workers are entitled to a maximum deduction of 25% of gross income, with rules varying by income level. Below €29,748/year, no professional expense justification is required on e-Fatura. Above that threshold, at least 15% must be justified with professional expenses.
Landlords (Category F)
Property owners can deduct expenses directly related to each property, including IMI, stamp duty, condominium charges, conservation works, and rent insurance. Tax rates range from 28% (non-residential) down to 5% for contracts exceeding 20 years.
Employees (Category A)
Employees benefit from a standard deduction of €4,462.15 for annual gross income up to €40,565. Those with mandatory professional association fees can reach €4,702.50.
Still Have Questions?
At Grupo Your, our certified accountants provide personalised support to ensure no deduction is missed. Contact us to discover how you can pay less tax this year.
