What is it?

It is an integrated supply of services which is based on the operational rental of a new vehicle for a certain duration and amount of km’s, through the payment of a fixed rent, where the client only supports the depreciation of the vehicle estimated in the contract. It includes all necessary services for its normal functioning and conservation.

Targets, advantages and services


  • Companies or equivalent entities
  • Self-Employed Businessmen
  • Public Administration
  • Private entities and individuals


  • The company can concentrate its resources more intensely in its activity 
  • The client can adjust the his automotive fleet to its necessities at any given time
  • An always up-to-date and operational fleet (rental contracts from 12 months onwards)
  • Assistance services 24 hours per day, all year long
  • Elimination of operational risks (devaluation, corrective maintenance
  • Better service quality via access to a preferential network of suppliers
  • Professional management concentrated in a single entity
  • Monthly payments of a fixed-value invoice for the vehicle usage and included services
  • Allows the equipment of a company with a modern vehicle fleet
  • Reduces costs through the access to the conditions negotiated by the Renting company 
  • Simplifies and facilitates the management of the fleet
  • Proactive counseling in matters regarding fleet policy and cost reduction measures


  • Auto shop management and Vehicle Maintenance
  • Substitution vehicle in case of breakdown, theft, accident or maintenance
  • Tires’ management
  • 24/7 Assistance, 365 days per year
  • Management of insurances and accidents
  • Management of fuel and tolls
  • Vehicle negotiation, acquisition and delivery
  • Payment of taxes and management of fines
  • Management and consulting reports

Renting description


It is custom for the contract duration to be between 12 and 60 months, although this duration can be extended.
For maximum mileages, normally, up to:
180.000 Km’s for petrol vehicles
200.000 Km’s for diesel vehicles

Rents scheme:

System: Fixed, early payment or payable in arrears
Terms: Constant
Frequency: Monthly


CiT and PiT (category B incomes with organized accounting)

The financial amortization component included in the rents paid for the rental of the vehicles, correspondent to the value of the depreciations not accepted as a tax expense is not deductible:
Electric vehicle – The annual depreciation above € 62.500 is not accepted as an expense
Plug-In Hybrid – The annual depreciation above € 50.000 is not accepted as an expense 
Bi-Fuel – The annual depreciation above € 37.500 is not accepted as an expense
Fossil fuels – The annual depreciation above € 25.000 is not accepted as an expense  
Hybrid – The annual depreciation above € 25.000 is not accepted as an expense 

At the end of each economic year, a comparison between the financial amortizations included in the Renting rents and the value of the accepted fiscal amortizations should be made, in case the vehicle belongs to the company’s assets (as per Circular nº 24/91, December, 19th)

Regarding Flat Rate Taxation:

The expenses related with vehicles will be taxed according to their investment values with the taxes being increased by 10% should the company declare fiscal losses:

Investment Value (w/VAT) Electrical V. Hybrid Plug-In Hybrid Bi-Fuel (LPG or Natural Gas) Fossil Fuel Vehicle
Up to € 25.000 exempted 5% 10% 7.5% 10%
Between € 25.000 and € 35.000 exempted 10.0% 27.5% 15.0% 27.5%
Superior to € 35.000 exempted 17.5% 35% 27.5% 35%

Self-Employed Businessman (with organized accounts)
The expenses with light passenger or commercial vehicles, motorcycles or motorbikes are taxed:

Investiment Value(c/ IVA) Electrical V. Hybrid Plug-In Bi-Fuel (LPG ou Natural Gas) Fossil Fuel Vehicle
Inferior to € 20.000 exempted 5% 7.5% 10%
Superior to € 20.000 exempted 10.5% 15% 20%

For the purpose of this tax, expenses related with the vehicles are considered to be reintegrations, rents or rentals, insurance, costs with upkeep and maintenance, fuels and taxes imposed on its use.

VAT (companies and self-employed businessman)
It is possible to deduct the VAT incurred with electrical and hybrid plug-in passenger vehicles, as long as the acquisition cost does not exceed the limits referred to in the Corporate Tax Code (62,500€ for electrical vehicles and 50,000€ for Hybrids Plug-in).

In the case of bi-fuel vehicles, run by LPG or Natural Gas, it is possible to deduct 50% of the VAT incurred in expenses related with those vehicles, as long as the acquisition cost does not exceed the limits referred to in the Corporate Tax Code: 37,500€.

In the case of light commercial vehicles, it is possible to deduct the totality of the rent’s VAT. The amount of 50% of the VAT over diesel is deductible (regardless of the type of the vehicle).

Statistical information

Conditions of access to the statistical information by non-members:


1. On request, ALF will make available to any potential new operator wishing to study their entry in any of the sectors where ALF’s members are present, all the information that it possesses and that may be required for this purpose, without prejudice of the individualized data, if requested, being made available 6 (six) months after its distribution to the members who report data.


2. To access the statistical information pertaining to the activities of Financial Leasing and/or Factoring, the requesting entity must be a Credit Institution or a Financial Institution with the corresponding authorization by the Banco de Portugal, or with a pending authorization process, providing for this purpose the certifying documentation.


3. The statistical information request must be sent in writing to the e-mail address, accompanied with the mentioned documentation in the previous point, if applicable.


4. The standard historical track record of the statistical information will be of up to 5 years, with a case-by-case analysis for requests with a larger track record.


5. Depending on the volume of statistical information requested, the usual reply period shall be of 10 working days which may be extended to 20 working days depending on the volume and detail requested and the dimension of the historical track record.

Portuguese Renting Production (nº vehicles)


European Renting Market


Penetration Ratio of Renting in Total New Light Vehicles Sold


Conditions of access to the statistical information by non-members

Monthly statistical information - Renting - March 2022



At the end of the Renting contract the vehicle is usually returned to the Renting Company and the client can opt for a new one.

The delivery moment aims to be as simple as possible for the client. In this regard, the returned vehicle should be in a normal usage condition, with some wear & tear being accepted according to the vehicle’s age and mileage.

Each Renting company has its own return location and specific procedures, namely, the existence or not of their own Fair Wear & Tear Manual. The Renting Company should be contacted to enquire about more details regarding these issues. With the goal of increasing the perception of clients to the doubts related with the returning of the vehicle, the ALF developed an indicative Fair Wear & Tear Manual, which we invite you to read.

Manual de Recondicionamento

Heavy Vehicle Renting

What is it?

Heavy Vehicle Renting (or Operational Leasing) consists in the operational rental of a new Heavy Vehicle, for a determined duration and mileage, where the maintenance is assured against the payment of a fixed monthly rent.

Several fleet management services are made available and, usually the contracts have a duration between 24 and 72 months.

Heavy vehicle Renting may be used in:

  • Tractors
  • Semi-trailers


  • Access to a modern and up-to-date fleet;
  • No entry fee and the client only pays for the useful life of the vehicle he uses;
  • Flexible service and adaptable to the evolution of the companies’ business;
  • Variable costs are transformed into fixed costs through fixed monthly rents;
  • Maintenance and repair services as well as other complementary ones: insurance, tires, taxes, substitution vehicle, fuel management, etc.;
  • The risks associated with the sale of the vehicle at the end of the contract, are fully transferred to the Renting (lessor).


Decree-Law n.º 15/88, 16th of January – Regulates the rental of goods vehicles without a driver

Decree-Law n.º 257/2007, 16th of July – Regulates the transport of goods aboard vehicles or sets of vehicles, with a gross weight equal or superior to 2500 kg


The publication of the Decree-Law nº 158/2009, 13th of July, instituted the Accounting Normalization System (local GAAP) in Portugal with a group of accounting and financial reporting standards.

The accounting of Heavy Vehicle Renting is regulated by NCRF 9 – Leases, which is based on IAS 17 – Leases.

Operating Leasing is understood as every lease which is not a finance lease, meaning the standard defined what financial leasing is to then classify as operating everything else.

Financial Leasing is understood to be “a lease that transfers substantially all the risk and rewards incidental to ownership of an asset” to the lessee and where the “title may or may not eventually be transferred.”

To be qualified as financial leasing, a contract must verify at least one of the following conditions:

  • the lease transfers ownership of the asset to the lessee by the end of the lease term;
  • the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised;
  • the lease term is for the major part of the economic life of the asset;
  • at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset;
  • the leased assets are of such a specialized nature that only the lessee can use them without major modifications.

Other indicative qualifying elements still exist.

If a contract does not verify at least one of the conditions stated above, it is classified as operating leasing and:

  • the leased asset is not recognized in the lessee’s balance sheet nor depreciated by him;
  • a cost is recognized on a straight-line basis (unless another systematic basis is more representative of the time pattern of the lessee’s benefit), meaning: it is considered as service in which the invoice paid to the Heavy Vehicle Renting is registered under External Services and Supplies of the company.

Notice: this information is merely indicative and does not substitute consulting the law in force nor consulting professionals to analyze the specificity of each case.