Portugal implements new affordable rental tax regime

Portugal has officially implemented a new legislative and fiscal framework for the housing rental market, effective September 1, 2026. The measures, approved by the Assembly of the Republic in May 2026, introduce the Simplified Affordable Rental Regime (RSAA) and Rental Investment Contracts (CIA).

The RSAA is designed to increase housing supply by offering full exemptions from IRS or IRC taxes to landlords who set rental prices within specific limits. To qualify, landlords—including individuals, real estate companies, and public entities—must set maximum rents based on 80% of the median rental value per square meter in their municipality, as determined by the National Institute of Statistics (INE). The exact rent limits may be adjusted via ordinance to account for factors such as housing type, energy certification, or parking availability.

Under the RSAA, tax exemptions remain valid as long as the contract conditions are met. For permanent residences, contracts must have a minimum duration of three years, while temporary residences for students or workers require a minimum of three months. Participation is managed through the Institute of Housing and Urban Rehabilitation (IHRU) electronic platform. Simultaneously, the CIA mechanism aims to support large-scale real estate rehabilitation and construction projects dedicated to the housing market.