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V1901-25 14 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Amortisation deduction for rented property based on 3% of higher of acquisition cost or cadastral value (excluding land)

The DGT confirms that amortisation for a rented property in Portugal is calculated as 3% of the higher of either the acquisition cost (excluding land) or the cadastral value (excluding land), depending on the owner's share.

The question raised

A request to determine how deductible depreciation is calculated for the determination of the net yield from real estate capital in the Personal Income Tax.

The DGT's ruling

To determine the net yield from real estate capital, the deductible depreciation may not exceed 3% of the higher of two values: the satisfied acquisition cost or the cadastral value, always excluding the land value in both cases. If the land value is unknown, it shall be calculated by prorating the acquisition cost between the cadastral values of the land and the construction. In the case of rights of use or enjoyment, depreciation is calculated by dividing the cost by the duration of the right or by applying the 3% rate if it is for life.

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