Luís Montenegro was speaking in his opening remarks at the biweekly debate in the Assembly of the Republic.
"The focus is to promote affordable housing for the Portuguese, and especially for the middle class," he said.
Among the measures to be approved on Thursday, the Prime Minister highlighted four.
"For tenants, starting in 2026, an increase to 900 euros and, in 2027, to 1,000 euros, of the IRS tax deduction for rental costs for moderately priced housing," he said.
For property owners, the Prime Minister highlighted "the reduction of the IRS rate from 25% to 10% on rental contracts for moderate-rent housing."
"Thirdly, the end of IRS capital gains on the sale of housing if the proceeds are reinvested in moderate-rent rental properties," he added.
As a fourth measure, he highlighted "the simplification of licensing in the urbanization and construction legal framework, shortening deadlines and streamlining processes."
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So the landlord can pocket more money, because there is no real incentive to lower the price, but somehow that should help renters. Yeah, right.
By I from Other on 25 Sep 2025, 08:29
Those 4 steps hopefully will help with providing more affordable accommodation to rent as well as to buy , but I would recommend another step which is allow public auctions ( after 5 years ) of properties in deceased estates that are left abandoned and neglected , and the proceeds ( taking into consideration the costs of auction and outstanding rates etc ) of the auction can then be distributed to the living beneficiaries.
By Leon from Algarve on 25 Sep 2025, 09:03
At Last! It is high time the taxes were lower on rental properties.
By L from Lisbon on 25 Sep 2025, 11:31
The reduction of the tax on rental property income is a good idea; that cost is obviously passed on to the tenant. Of course it will take time for the lower cost to filter into rental rates. But the lower rate will have an immediate effect on vital investment into residential rental property,.
By mark Holden from Algarve on 25 Sep 2025, 11:40
This should incentivise the owners of the vacant properties to enter the rental market.
By Dave from Other on 26 Sep 2025, 08:45
By far the most effective measure will be the reduction of the tax from 25% to 10% in rental income revenues. Despite the ceiling of 2300 euros monthly rent which should desappear altogether. For the government benefit. This is to compare with the VAT tax of 6% applied to AL rents which is responsible for a distortion of the rental market. Why should a landowner rent his house paying 25 % of IRS and the additional risk of abuse of tenants not paying the rent and not leaving the house when it could put that same house in the AL market paying only 6% of tax with no risks to forced occupation?
By Fernando Fonseca from Lisbon on 27 Sep 2025, 13:52