Category F — Rental Income

Category F (Categoria F) covers income from leasing immovable property — residential, commercial, or rural. The default tax rate is 28% autonomous (flat), but significant reductions apply based on lease duration: 26% for leases of 5–10 years, 15% for 10–20 years, and 10% for leases exceeding 20 years. Landlords participating in the controlled rents program (Programa de Apoio ao Arrendamento) also benefit from reduced rates. Landlords may elect to aggregate rental income with progressive brackets — advantageous if their total income is low enough to result in a lower effective rate. Legitimate property maintenance and management expenses can be deducted before arriving at the net rental income figure.