Portugal Mortgage Interest Tax Deduction Calculator

Portugal offers a 15% IRS tax credit on mortgage interest paid for your habitação própria e permanente (primary residence), up to a maximum of approximately €1,000 of eligible interest — giving a maximum annual saving of about €150. This is modest compared to the Netherlands or Norway, but it is a real, ongoing benefit.

The deductible base and maximum credit are income-dependent: higher earners receive a smaller deduction or none at all. For incomes above approximately €35,000, the benefit is reduced; above ~€80,000, it may be eliminated.

In 2023, the Portuguese government introduced an Apoio Extraordinário (extraordinary support) for homeowners hit by rising ECB interest rates. This allowed households with a mortgage on their primary residence to deduct a portion of the increase in interest payments compared to 2022 levels, subject to income caps.

This temporary measure is separate from the permanent encargos com habitação deduction and may not continue beyond 2024. Check Portal das Finanças for current-year rules.

The deduction is claimed in your annual Declaração de IRS on Portal das Finanças (portaldasfinancas.gov.pt). The campaign typically runs from April 1 to June 30. Your bank or mortgage lender provides a declaration of interest paid; the pre-filled return often includes this data automatically.

For the Apoio Extraordinário, the additional deduction appears in a separate field in the 2024 IRS return if you qualify.

Does the deduction apply to mortgages for property renovation?
The encargos com habitação deduction covers mortgages for acquisition or construction of primary residence. Renovation loans may qualify under specific conditions — consult AT (Autoridade Tributária) guidelines.

Is BeastyTax free?
Yes, completely free — no account, no hidden costs.