IRS is charged on the net rent (rents received minus deductible expenses: IMI, condominium fees, maintenance works and insurance, among others). The autonomous rate depends on the purpose and length of the contract: 28% for non-residential and, for housing, from 25% down to 5% by term. Alternatively, you can opt for aggregation and pay the progressive IRS rates.
| Gross annual rent (rent × 12) | €9,600.00 |
| − Deductible expenses | €1,200.00 |
| Taxable income | €8,400.00 |
| IRS (25%) | −€2,100.00 |
| Net income (effective rate 21.88%) | €6,300.00 |
Educational estimate, not tax or financial advice. It computes the autonomous taxation of rents (Category F) in mainland Portugal. It does not cover the aggregation option, the new moderate-rent regime (10%) still pending regulation, or non-residents.