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Portugal Tax Deductions

All forms of tax relief relate to the income of an individual in Portugal.
Tax relief is granted in the form of a tax credit, that is, a reduction of the tax itself, and sometimes the relief is in the form of a deduction, that is a reduction, on the amount of taxable income.
The following amounts are subject to the definitions and limits in Portuguese law.

Personal Tax Relief	Comments
Personal tax credits	Depending on the family status of the individual and the number of dependent family members.
Interest on the purchase of an apartment.	Up to 30% for a permanent place of residence.
Educational costs	Up to 30% of the cost.
Medical expenses	30% of the cost subject to certain conditions.
Insurance & Pension	Up to 25%.
Alimony Payment	If paid by court ruling.
Donations	Tax credit of 25%, up to a limit.

BUSINESS DEDUCTIONS

In addition to the reductions/credits specified above, reductions and business expenses may be sought as follows:

Offset of losses - A loss may be offset up to 6 years forward.
Consolidated statements - The possibility exists in Portugal to offset a loss in one company in a group against the profit of another company in the group.
Financing costs

Depreciation of Fixed Assets

The depreciated balance or the straight-line method are the accepted method of depreciation in Portugal.
A table of the rates of depreciation according to the straight line method is as below. :

Class of Asset	Annual Depreciation (%)
Office buildings	2
Industrial buildings	5
Machinery & equipment & office equipment	12.5% - 25%
Computers and Software	33.3%
Cars (subject to a limit)	4-25

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