If the government's tax package is approved in Parliament, landlords who have houses to rent for up to €2,300 per month will have significant tax relief. This is because the bill foresees that the income tax rate will fall from the current 25% to 10%. And this reduction applies to all rental contracts, both new and existing.

The clarification was given by Miguel Pinto Luz, Minister of Infrastructure and Housing, during the CNN Summit conference, stating that the reduction in income tax to 10% applies to "all contracts, including current ones, provided they charge rents below €2,300".

This means that the reduction in income tax from 25% to 10% on rental income from residential lease agreements applies to all contracts, new and existing, provided that the rents are up to €2,300 and the earnings were obtained between 2026 and the end of 2029.

If the landlord is a company and subject to corporate income tax (IRPJ), there is also a reduction in the tax burden, with the tax applying to 50% of the earnings. In other words, companies that rent out properties at moderate prices will see half of their income exempt from this tax.

But this tax package goes even further. Owners who charge rents 20% below the median of their respective municipality "will have 0% income tax," guaranteed Miguel Pinto Luz.

Note that this total exemption applies through the Simplified Affordable Housing Regime (RSAA), which exempts from IRS and IRC contracts that have rent limits up to "80% of the median rent values ​​per m2 in each municipality" and whose minimum term is three years or, "in the case of temporary residence, three months", reads the draft law, which still has to be voted on in Parliament.