A recent legislative update in Portugal is set to change how lease agreements are reported to the tax authorities.
Until now, only landlords were allowed to register rental contracts with the Tax and Customs Authority via the Finance Portal (Portal das Finanças). In many cases, landlords failed to comply with this obligation, which meant that tenants were unable to deduct rent expenses on their IRS returns or access housing support programs.
To address this issue, a new ordinance was published on 13 March 2025, establishing that from 1 August 2025, tenants will be able to register their lease agreements themselves when landlords do not fulfil this duty.
When doing so, the tenant must indicate the reason for the communication and submit the lease or sublease agreement, along with documents supporting the information provided.
This change empowers tenants to take control of their tax deductions and ensures fairer access to programs such as Porta 65. It is also a step forward in promoting transparency and greater compliance in the rental market.
Tax Department
Sofia Quental | Inês Grácio | Catarina Amaral
