Ordinance 98-A/2015, of 31^st March, came into force on 1^st April 2015, making it mandatory for individuals, not companies, to issue an electronic receipt for rental income received. Previously, rent receipts were issued on paper.

Taxpayers are, however, exempt from issuing an electronic receipt in the following situations (which are cumulative):

• they are not required to have an electronic mailbox under number 10 of article 19.º of General Tax Law;
• they did not earn in the previous year, any rental income in an amount exceeding twice the value of the “IAS” (The Social Support Index – presently €419.22).

In addition, taxpayers are also exempt from issuing an electronic rent receipt:

• if they received  any income under contracts that are covered by the Rural Lease Law;
• if they are aged 65 years, as at 31^st December of the preceding year (this exemption still remains, even if  the taxpayer has access to an electronic mailbox).

If none of these exemptions occur, the electronic rent receipts are mandatory.

As the abovementioned ordinance of 31^st of March, produced its effects from 1^st January 2015 (retroactively), all lease contracts entered into before 1^st April 2015, must be registered by the taxpayers on the Tax Department website (Portal das Finanças - www.portaldasfinancas.gov.pt). To register, reference must be made to the identification of the parties, type of contract, object of the contract, start date of the contract, agreed rental income and when the payments are due). Only after the registration will it be possible to issue the electronic rental receipt.

If the lease contract is dated after 31^st of March of 2015, it is necessary to present the contract to the Tax Authority in order for stamp duty to be paid, and the contract will then be registered on the Tax Authority’s database.

This solution permits a greater control by the Tax Authority on the rental income received from lease contracts, simplifying the manner in which the income is declared by the taxpayers. If you are a landlord, it is important to determine whether this law applies to you to ensure that you are complying with your legal and fiscal obligations.

For any clarifications or queries, please feel free to contact us on +351217981030 or by e-mail to patricio.associados@palaw.com.pt.