Arbitration court rules again that a rental deposit is not taxable income
For the second time, the administrative arbitration centre CAAD has ruled against the tax authority on whether a rental deposit counts as income. The decision holds that a caução is not actual income, because it is not received as payment for anything — it secures obligations and is meant to be returned.
Why it matters for your move
If a deposit was taxed as rental income on your return, this line of decisions is worth showing your accountant. It also matters to tenants: money held as security stays yours, and that is now being confirmed from the tax side too.
This is Re-locant.com’s own brief, written to explain what the update means for people moving to or living in Portugal. For the full original report, see the source below.