Portugal's Tax System Favors Landlords Over Tenants, Study Finds
A recent study by Expresso reveals a significant disparity in tax benefits between tenants and landlords in Portugal. The findings highlight the stark contrast in financial advantages, with landlords often receiving much larger tax breaks than their tenants.
In the first instance, a couple earning an average salary of 640 euros per month saves around 200 euros annually through IRS deductions. However, their landlord enjoys nearly six times more in tax benefits, amounting to approximately 1200 euros. This substantial difference underscores the imbalance in the current system.
A second example illustrates the extent of the disparity. A family with an income of 5750 euros and monthly rent of 2300 euros sees their IRS deduction capped at 200 euros. Conversely, their landlord receives a tax break 20.7 times greater, totaling 4200 euros. These figures underscore the vast gap in financial advantages between tenants and landlords.
The simulations conducted for Expresso by an unnamed consultant expose the striking inequality in tax benefits. Tenants, despite their financial constraints, receive minimal IRS deductions, while landlords reap substantial tax breaks. This disparity warrants further examination and potential policy reform to ensure fairness and equity in the Portuguese tax system.
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