When filing your Portuguese income tax return (IRS), several categories of expenses may be deducted, reducing the amount of tax payable. The main deduction limits are:
- Household Expenses: 35% of general family expenses, up to a maximum of €250,00 per taxpayer.
- Health: 15% of health expenses and health insurance premiums, capped at €1.000,00 per household.
- Education: 30% of education-related expenses, up to €800,00.
This limit may be higher for students living away from their usual residence. - Rental Costs: 15% of rent paid, up to €600,00.
This limit may increase for properties located in interior regions. - Care Homes: 25% of expenses with retirement or nursing homes, up to €403,75.
- Invoice Requirement (E-Invoicing incentives):
- 15% of VAT on veterinary, restaurant & hospitality, car and motorcycle maintenance expenses;
- 30% of VAT on gym memberships;
- 100% of VAT on public transport passes and newspaper/magazine subscriptions.
The overall limit for this deduction is €250,00.
- Domestic Work: 5% of salaries paid for domestic work, up to €200,00.