To keep it simple, we will only refer to the rental income from private villas and apartments. This income is subject to income tax within the relevant tax brackets. However, if such income is below PTE 2 million, a rate of 15% is applied and normally immediately deducted by the rental agency (retenção na fonte).

Expenses for management and maintenance as well as the local authority tax (contribuição autarquica) are deductible.