Under the proposed measures, the autonomous personal income tax (IRS) rate on rental income would be reduced from 25% to 10% for properties leased within this price range. Furthermore, capital gains on the sale of properties will be fully exempt from IRS if the proceeds are reinvested in new properties intended for rental, provided the monthly rent does not exceed 2.300 EUR. Companies that lease residential properties within this bracket will benefit from a 50% reduction in corporate income tax (IRC) on rental income.

For tenants, the proposal raises the ceiling for rent deductions under IRS from 800 EUR to 900 EUR in 2026, and to 1.000 EUR from 2027 onward. Buyers of controlled-cost housing will also gain from reductions in the Municipal Property Transfer Tax (IMT) and Stamp Duty.

These fiscal measures aim to stimulate the supply of rental housing, make the sector more attractive for investors, and promote greater access to affordable accommodation across Portugal.

Text based on information from the Lusa news agency, accessed via Idealista