When validating your invoices, you will have already tried to understand where they are condominium expenses in the E-Fatura. And certainly he did not find them, which immediately raises several doubts.
If you paid and have payment receipts, where are the invoices? And, if it’s an expense you have with your property – and even more so since it’s a generally high expense – why can’t you deduct it?
The absence of condominium expenses in the E-Fatura has been much discussed, especially since this obligation for taxpayers to validate their invoices on this platform emerged.
According to data from the Portuguese Association of Condominium Management and Administration Companies (APEGAC), around five million Portuguese live in a condominium environment.
That is, condominium expenses are part of the monthly budget of millions of families, but despite this, they cannot be deducted from the IRS, unless you are a landlord.
Condominium expenses in E-Fatura: why you can’t find them
So, what is the reason for the non-inclusion of condominium expenses in the E-Fatura? The legislation does not provide for this and, unless it is changed, this is a situation that will remain.
This is because condominiums are not required to communicate these payments to the Tax Authority. In fact, what you receive when you pay your dues is a receipt, not an invoice.
Now, as there is no legal framework that obliges the communication of these receipts, not only are they not in the E-Fatura, but they cannot be deducted by the IRS.
Nonetheless, if you own a fraction and it is rented, you can now declare this expensealthough in a different category, as we will see below.
Now, having taken for granted that condominium expenses are not included in the E-Fatura and cannot be deducted, it remains to be seen what actually enters the field of real estate charges.
these deductions correspond to 15% of the amount supported and include some of the expenses related to own or rented housing.
Interest on home loans
The interest you pay on the home loan is deductible, but not in all cases.
In order to benefit from this deduction, your home loan must be prior to December 31, 2011.
If you took out the loan after that date or if you had a home loan agreement prior to 2011, but changed banks, you lose this advantage.
can deduce up to 15% of interest expensesup to a limit maximum of 296 euros.
This field also includes interest on contracts entered into by December 31, 2011 with housing cooperatives or under the group purchase regime, for the acquisition of properties for own and permanent housing or lease for permanent housing. The deduction limit is 296 euros.
Rents for financial leasing contract made up to 31 December 2011 relating to properties for own and permanent housing and carried out under this regime are also considered. The limit is also 296 euros.
In all these situations, and in the case of households with lower incomes, the limit of 296 euros can go up to 450 euros.
Tenants can also deduct property charges corresponding to 15% of expenses incurred with the lace.
However, and for this deduction to be made, it is necessary that the lease contract has been concluded under the Urban Lease Regime or the New Urban Lease Regime.
And, of course, that the landlord issues a receipt and the contract is duly registered with the Treasury.
Home rent value deductions have a limit of 502 euros. However, there is an increase for those with lower incomes and, in these cases, the deduction can reach 800 euros.
There is also an added benefit for those who have moved to the interior of the country and rented a house there. For these families, who transferred their permanent residence to an interior territory, the amount of the deduction rises to a thousand euros. This bonus only applies for a period of three years.
Landlords can deduct condominium expenses
There is, however, one situation where condominium expenses can be deducted from the IRS, although outside the category of general and family expenses.
It happens when you are the owner, have the house rented to a tenant, but pay the condominium fees.
In this case, the condominium expenses are declared in the property income sectionsuch as, for example, maintenance costs for the property, IMI and the issuance of the energy certificate.
Thus, and in accordance with the IRS code, are deductible, in relation to each fraction or part of fraction, other charges that, under the terms of the law, the owner must bear and that are actually paid by the taxable person. That is, the condominium expenses.
If you have more than one autonomous fraction in the same building, these charges are imputed according to the permil assigned to each fraction or part of fraction.
However, this deduction is only valid if the condominium is paid by the landlord. If you transfer this obligation to the tenant, you lose the right to deduct.
Article originally published in February 2020. Last updated in January 2023.