Imobilizado
Long-term assets (fixed assets)
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Portuguese accounting term for long-term business assets, tangible items used in the business for more than one fiscal year, such as computers, equipment, vehicles, and furniture. Distinguished from inventory (held for resale) and consumables (used up within the year).
Imobilizado is the Portuguese accounting term for long-term assets, tangible items a business uses for more than one fiscal year. On the AT portal's periodic VAT declaration (Declaração Periódica de IVA), the term appears as the label for field #20: Ativos não correntes (Imobilizado).
The three tests
A purchase qualifies as imobilizado when it satisfies all three:
- Tangible: a physical object, not a service or subscription
- Used in the business: for business purposes, not personal use
- Lasts more than one fiscal year: it doesn't get consumed in the normal course of work
Qualifying examples: laptop, desktop computer, tablet, external monitor, professional camera, office desk and chair, a vehicle used for client visits.
Not imobilizado: paper and toner (consumables), monthly software subscriptions, training courses, professional fees, cloud storage plans.
Imobilizado vs inventário
Both are tangible business goods, but they differ by purpose:
- Imobilizado is held to be used in the business: equipment, vehicles, furniture you operate with.
- Inventário (inventory, existências) is held to be sold: stock awaiting resale.
The distinction matters for the periodic VAT return: imobilizado goes in field #20, inventory in the dedicated fields #21/#22/#23 (one per VAT rate). A reseller's stock and a reseller's own working laptop are tracked separately.
The €1,000 threshold
Portugal draws a routing line at €1,000 pre-VAT for filing purposes: assets above the threshold go in field #20, assets below go in field #24 alongside everyday deductible VAT. The threshold is a filing rule, not part of the definition of imobilizado.
For the routing rules, the calculation, and worked examples, see the Filing field #20 guide.
Regularization: the multi-year adjustment rule
When VAT is deducted on a long-term asset, AT reserves the right to adjust the deduction if the business's activity changes over time:
- 5-year window for movable assets (equipment, computers, vehicles)
- 20-year window for real estate
In practice, this only triggers when a freelancer starts providing VAT-exempt services alongside taxable ones (mixed activity). For solo entrepreneurs with fully taxable activity (the common case under the simplified regime), regularization never comes into play.
How imobilizado relates to the simplified IRS regime
Under the simplified regime, IRS taxable income is calculated using fixed coefficients. The 0.75 coefficient for services-in-Art.-151 professions assumes 25% of revenue covers expenses; actual expense receipts, including asset purchases, don't change the calculation.
VAT recovery on imobilizado is independent of IRS treatment. The two systems, income tax (IRS) and value-added tax (IVA), run separately:
- A €1,500 laptop with €345 VAT recovers €345 on the IVA Periódica, regardless of IRS regime.
- The €1,500 net cost has no effect on the IRS return under the simplified regime.
The asset register (Ficha de Imobilizado)
Portuguese tax rules require businesses to maintain an inventory of long-term assets separately from the VAT declaration: a Ficha de Imobilizado documenting each asset (what, when, cost, useful life, depreciation). For a solo entrepreneur with a handful of assets it can live in a spreadsheet. A contabilista certificado will manage this when one is engaged.
The asset register and the periodic VAT return are independent obligations: declaring imobilizado correctly on the IVA Periódica doesn't automatically update the register.
Frequently asked questions
What counts as imobilizado (a fixed asset)?
Any tangible asset used in the business for more than one fiscal year. The three tests: it's tangible (a physical object), it's used in the business (not personal), and it lasts more than one year (not consumed in normal use). Classic examples: laptop, desktop computer, professional camera equipment, office furniture, a vehicle used for work. Consumables (paper, ink, subscriptions) and services (training, professional fees) are not imobilizado.
How is imobilizado different from inventário (inventory)?
Imobilizado is held to be used in the business; inventário is held to be sold. A reseller's stock of laptops awaiting sale is inventário. A laptop the reseller uses internally for bookkeeping is imobilizado. On the IVA Periódica form they sit in different fields, imobilizado in #20, inventory in #21/#22/#23.
What is the €1,000 threshold I keep seeing?
Portugal's tax authority treats long-term assets above €1,000 (pre-VAT cost) separately from everyday purchases on the periodic VAT declaration. The threshold matters at filing time, not as part of the term's definition. See the [Filing field #20 guide](/guides/imobilizado-iva-periodica) for the routing rules and worked examples.
What is the regularization rule for imobilizado?
When VAT is deducted on a long-term asset, AT reserves the right to adjust that deduction if business activities change in subsequent years. The adjustment window is 5 years for movable assets (computers, equipment, vehicles) and 20 years for real estate. In practice this only triggers when a freelancer starts providing VAT-exempt services alongside taxable ones (creating mixed activity). For solo entrepreneurs with fully taxable activity, regularization never comes into play.
Does the asset cost reduce my IRS taxable income under the simplified regime?
No. Under the simplified IRS regime, taxable income is calculated using fixed coefficients (0.75 for service providers in Art. 151 professions). Actual expenses, including asset purchases, don't reduce IRS taxable income directly. The VAT element is separate: VAT paid on qualifying assets is still recoverable through the IVA Periódica declaration regardless of IRS regime.
Do I need a Ficha de Imobilizado (asset register)?
Portuguese tax rules require businesses to maintain an inventory of long-term assets: what was bought, when, for what price, and the expected useful life. This is separate from the VAT declaration. For a solo entrepreneur with a small number of assets it can live in a spreadsheet. A contabilista certificado will normally manage this if you're working with one.
Related guides
Step-by-step walkthroughs that apply this term.
Related terms
Imposto sobre o Valor Acrescentado, Portugal's value-added tax, charged on most goods and services. The standard rate on the mainland is 23%.
VATIVAValue-Added Tax, a consumption tax on goods and services used across the EU. In Portugal it's called IVA and charged at 23% (standard rate) on the mainland.
Regime SimplificadoRegime Simplificado de Tributação · Simplified Tax RegimePortugal's simplified tax regime for solo entrepreneurs and small businesses, where taxable income is calculated using fixed coefficients applied to gross revenue.
Trabalhador IndependenteSelf-Employed WorkerThe Portuguese term for an independent worker or sole entrepreneur, the equivalent of a freelancer or sole trader in other countries.