Estate agents commission deductibleBy Lina Rodrigues • Jul 1st, 2008 • Category: Company News, Property News & Info
The Tax department have confirmed that commission paid to an estate agent on the sale of the property is considered a deductible expense against capital gains tax (Mais Valia).
In accordance with the Portuguese tax laws, the costs of any improvements made to the property which are likely to have increased its value, providing you held valid receipts from the last 5 years, were deductible as ‘necessary’ expenses when purchasing/selling the property.
Up until now the Fiscal Administration had not yet made its position clear whether or not the commission paid to the estate agent would be considered as a necessary expense in the purchase/sale of a property.
Now the Fiscal Administration have publicly confirmed that as long as it clearly and unequivocally shows the connection on the amount paid to the estate agent, and it is legally documented on the sale of deeds the agent involved in the sale, then there is no reason why this cannot be considered as a necessary expense deductible on capital gains tax.