AT Makes Practical Moves in 2021

Reduced taxes on property and health are only part of the improved customer experience.

Good news from The Portuguese Tax and Customs Agency! If you are planning to sell property, use electricity, or like to work out, you will probably save some money at the end of the fiscal year, according to a general newsletter sent out in mid-January, 2021.

Some key changes to taxes in 2021 have been made, namely: the IRS withholding tax rates of workers has been lowered, VAT has been reduced on electricity consumption up to 100 kWh (or 150 kWh, in the case of large families), and capital gains from a property, whether as an alojamento local rental, a personal asset, or a commercial space will only be determined when the property is sold to third parties instead of the previous predefined flat rate.

Moreover, deductible health expenses have been extended to include the purchase of masks and alcohol gel, so be sure to give your NIF when purchasing these items. Lastly, gym membership fees will see a 15% reduction in VAT in 2021. These fees can also be deducted from your taxes paid in the following year.

The Portuguese Tax and Customs Authority (AT) has also doubled down on its efforts to extend its remote and virtual service channels for all Portuguese taxpayers. The user-friendly Finance Portal “e-counter” is still the best option to access your finances, check your tax status, issue receipts, and more, but now they have upped the number of agents at their call center (217 206 707), opened chat access on the portal under  “contact us” in the lower right corner of the website. Additionally, the AT is inviting taxpayers to check out their explanatory videos on their Facebook page.