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Tenho de declarar a caução de rendas em IRS?

Do I have to declare rental deposit in IRS?

Court rules against Tax Authority and explains why. Find out more.

21 Feb 20242 min

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Need to balance your budget, and have credits and/or insurance? Contact the credit intermediaries and insurance mediators from Poupança no Minuto and find solutions to lower your installments! But read, first, the question at hand.

Rent deposit: Do I need to declare it in IRS?

The Tax Authority (AT) fined a taxpayer for not declaring the rental deposit in IRS, but the arbitration court overturned the decision.

The Administrative Arbitration Center (CAAD) ruled in favor of the taxpayer stating that the security deposit for rents should not be declared in IRS, contrary to what the Tax Authority has been advocating. 

"The security deposit is not truly an income, neither from a civil law perspective nor from an economic perspective, as it does not truly integrate into the assets of its beneficiary," is the justification shared by the entity, according to Notícias ao Minuto.    

The taxpayer in question did not declare the IRS for a deposit, as it would be returned to the owner in case of no default by the tenant.

In this sense, the Tax Authority demanded that the taxpayer pay 160 thousand euros in fines, plus 21 thousand euros in interest. Through the court decision in favor of the taxpayer, the amount of 180 thousand euros ended up being returned to the tenant.

As a result, legally, you are exempt from declaring any rent deposit in IRS, and cannot be fined by the Tax Administration. This is one less expense subject to tax.

If you need help stretching your monthly budget, know that Poupança no Minuto can help you renegotiate credit and insurance conditions with your contracting entities. Our service is free and finds the best and most suitable offers for you, whether it's renegotiation, new contracting, or transferring financing to other banks!

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Financefy S.A. Credit Intermediary registered with Banco de Portugal (Bank of Portugal) as nº 0006860

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Poupança no Minuto is a brand owned by Financefy, S.A., a linked credit intermediary registered with the Bank of Portugal under number 0006860. Services authorized to provide: Presentation or proposal of credit agreements to consumers. Assistance to consumers, through the performance of preparatory acts or other pre-contractual management work in relation to credit agreements that have not been presented or proposed by the company. Lenders: Bankinter, S.A. - Branch in Portugal, Caixa Geral De Depósitos, S.A., Banco BPIi S.A., Banco Santander Totta, S.A., Abanca Corporación Bancaria, S.A., Branch in Portugal, Banco Ctt, S.A., Novo Banco, S.A., Cofidis, BNP Paribas Personal Finance, S.A. - Branch in Portugal, Real Estate Credit Union, S.A., Credit Financial Establishment (Sole Proprietorship) - Branch in Portugal, Bni - International Business Bank (Europe), S.A., Banco Bic Português, Sa, Unicre - Credit Financial Institution, S.A.