IRS 2020 – Nº1: General Expenses – an overview

To make the most of the interactive tax system, you should give your tax number (NIF) on invoices for any expense in order to be entitled to the following tax deductions:

▪ to principal residence, up to a maximum of €296;
▪ automobile and motorcycle repairs, up to a maximum of €250.

When requesting invoices for purchases, be sure to include your tax number (NIF), so that shops and businesses can automatically report the transaction for a tax credit. The Portuguese Tax Authority (AT) will list automatically all of your eligible expenses on your personal page on the Finanças website, which can be consulted and approved by you online.

Where taxable income (per adult) exceeds €8,000, the sum of health, education, property, retirement home and maintenance allowances is capped at €1,250, reducing progressively to nil on incomes exceeding €80,000 (per adult). There is a 10% increase to the cap per child.

Personal and Family Tax Credits
All taxpayers are entitled to personal credits depending on their civil status in relation to the family group (rather than specific income).

Next: Medical expenses

By Dennis Swing Greene
|| features@algarveresident.com

Dennis Swing Greene is Chairman and International Tax Consultant for euroFINESCO s.a.
www.eurofinesco.com