I'm currently trying to finalise my 2010 tax return for a holiday property that I own in Portugal. The property is rented out for part of the year and is used by me and my family for part of the year and is unoccupied the rest of the time, particularly during the off season.
I employ a company that specialises in international tax returns to prepare my Portuguese tax return for me. In previous years, I was advised that a proportion of certain expenses (for example community charge) could be offset against rental income, depending on how many weeks the property was rented out. This seemed logical and was broadly consistent with the general principles set out in the Irish Revenue's guidance on how Irish income tax liabilities on foreign properties should be calculated.
This year, a completely different approach has been taken with some expenses that were previously apportioned being allowed in full and others not allowed at all. When I queried the change I was given a somewhat unsatisfactory response.
Does anyone know if there has been a fundamental change between 2009 tax year and 2010 tax year in the calculation of Portuguese tax on foreign owned rental properties?
Thanks
Homer
I employ a company that specialises in international tax returns to prepare my Portuguese tax return for me. In previous years, I was advised that a proportion of certain expenses (for example community charge) could be offset against rental income, depending on how many weeks the property was rented out. This seemed logical and was broadly consistent with the general principles set out in the Irish Revenue's guidance on how Irish income tax liabilities on foreign properties should be calculated.
This year, a completely different approach has been taken with some expenses that were previously apportioned being allowed in full and others not allowed at all. When I queried the change I was given a somewhat unsatisfactory response.
Does anyone know if there has been a fundamental change between 2009 tax year and 2010 tax year in the calculation of Portuguese tax on foreign owned rental properties?
Thanks
Homer