News
New Housing Tax Package for 2026: What’s changing?
New Housing Tax Package for 2026: What’s changing?
Service title
New Housing Tax Package for 2026: What’s changing?
New Housing Tax Package for 2026: What’s changing?
The Government has approved a package of tax measures aimed at increasing the housing supply in Portugal, promoting the purchase, sale, renovation and letting of properties through tax incentives and tax reductions.
Key measures
Benefits for tenants
The rent deduction on personal income tax (IRS) will increase to €900 in 2026 and to €1,000 in 2027.
The requirement for tenancy agreements to be duly registered in order to access tax benefits remains in place.
Greater protection for capital gains
Anyone selling their own permanent home will continue to benefit from income tax exemption on capital gains when reinvesting in another property.
The new scheme provides additional protection in cases of delay or cancellation of the transaction for reasons beyond the seller’s control.
Support for home buying
Exemption from IMT on the first purchase of a controlled-cost owner-occupied and permanent home.
Additional benefits regarding Stamp Duty for certain properties covered by the scheme.
Advantages for landlords
️Incentives for affordable rental housing
Landlords who charge rents below market rates may be eligible for exemptions from personal income tax (IRS), corporation tax (IRC), property tax (IMI) and stamp duty.
Tenancy agreements must meet specific requirements regarding duration and rent caps.
Limits set for 2026
Moderate rent up to €2,300 per month.
Maximum sale price to qualify for certain tax benefits: €660,982.
Objective of the measures
The tax package aims to stimulate the construction of new homes, encourage long-term letting and facilitate access to housing by reducing the tax burden on households, investors and landlords. Most of the measures will remain in force until the end of 2029.
https://www.millenniumbcp.pt/afinal-contas/pacote-fiscal-habitacao-2026
27 May 2026
The Government has approved a package of tax measures aimed at increasing the housing supply in Portugal, promoting the purchase, sale, renovation and letting of properties through tax incentives and tax reductions.
Key measures
Benefits for tenants
The rent deduction on personal income tax (IRS) will increase to €900 in 2026 and to €1,000 in 2027.
The requirement for tenancy agreements to be duly registered in order to access tax benefits remains in place.
Greater protection for capital gains
Anyone selling their own permanent home will continue to benefit from income tax exemption on capital gains when reinvesting in another property.
The new scheme provides additional protection in cases of delay or cancellation of the transaction for reasons beyond the seller’s control.
Support for home buying
Exemption from IMT on the first purchase of a controlled-cost owner-occupied and permanent home.
Additional benefits regarding Stamp Duty for certain properties covered by the scheme.
Advantages for landlords
️Incentives for affordable rental housing
Landlords who charge rents below market rates may be eligible for exemptions from personal income tax (IRS), corporation tax (IRC), property tax (IMI) and stamp duty.
Tenancy agreements must meet specific requirements regarding duration and rent caps.
Limits set for 2026
Moderate rent up to €2,300 per month.
Maximum sale price to qualify for certain tax benefits: €660,982.
Objective of the measures
The tax package aims to stimulate the construction of new homes, encourage long-term letting and facilitate access to housing by reducing the tax burden on households, investors and landlords. Most of the measures will remain in force until the end of 2029.
https://www.millenniumbcp.pt/afinal-contas/pacote-fiscal-habitacao-2026
27 May 2026
The Government has approved a package of tax measures aimed at increasing the housing supply in Portugal, promoting the purchase, sale, renovation and letting of properties through tax incentives and tax reductions.
Key measures
Benefits for tenants
The rent deduction on personal income tax (IRS) will increase to €900 in 2026 and to €1,000 in 2027.
The requirement for tenancy agreements to be duly registered in order to access tax benefits remains in place.
Greater protection for capital gains
Anyone selling their own permanent home will continue to benefit from income tax exemption on capital gains when reinvesting in another property.
The new scheme provides additional protection in cases of delay or cancellation of the transaction for reasons beyond the seller’s control.
Support for home buying
Exemption from IMT on the first purchase of a controlled-cost owner-occupied and permanent home.
Additional benefits regarding Stamp Duty for certain properties covered by the scheme.
Advantages for landlords
️Incentives for affordable rental housing
Landlords who charge rents below market rates may be eligible for exemptions from personal income tax (IRS), corporation tax (IRC), property tax (IMI) and stamp duty.
Tenancy agreements must meet specific requirements regarding duration and rent caps.
Limits set for 2026
Moderate rent up to €2,300 per month.
Maximum sale price to qualify for certain tax benefits: €660,982.
Objective of the measures
The tax package aims to stimulate the construction of new homes, encourage long-term letting and facilitate access to housing by reducing the tax burden on households, investors and landlords. Most of the measures will remain in force until the end of 2029.
https://www.millenniumbcp.pt/afinal-contas/pacote-fiscal-habitacao-2026
27 May 2026
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Dui1 aute irure dolor in reprehenderit involuptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum Lorem ipsum dolor sit amet, consectetur adipisicing eli Riding Medical1
The Government has approved a package of tax measures aimed at increasing the housing supply in Portugal, promoting the purchase, sale, renovation and letting of properties through tax incentives and tax reductions.
Key measures
Benefits for tenants
The rent deduction on personal income tax (IRS) will increase to €900 in 2026 and to €1,000 in 2027.
The requirement for tenancy agreements to be duly registered in order to access tax benefits remains in place.
Greater protection for capital gains
Anyone selling their own permanent home will continue to benefit from income tax exemption on capital gains when reinvesting in another property.
The new scheme provides additional protection in cases of delay or cancellation of the transaction for reasons beyond the seller’s control.
Support for home buying
Exemption from IMT on the first purchase of a controlled-cost owner-occupied and permanent home.
Additional benefits regarding Stamp Duty for certain properties covered by the scheme.
Advantages for landlords
️Incentives for affordable rental housing
Landlords who charge rents below market rates may be eligible for exemptions from personal income tax (IRS), corporation tax (IRC), property tax (IMI) and stamp duty.
Tenancy agreements must meet specific requirements regarding duration and rent caps.
Limits set for 2026
Moderate rent up to €2,300 per month.
Maximum sale price to qualify for certain tax benefits: €660,982.
Objective of the measures
The tax package aims to stimulate the construction of new homes, encourage long-term letting and facilitate access to housing by reducing the tax burden on households, investors and landlords. Most of the measures will remain in force until the end of 2029.
https://www.millenniumbcp.pt/afinal-contas/pacote-fiscal-habitacao-2026
27 May 2026
Home insurance will no longer be optional
Service title
Home insurance will no longer be optional
The Government wants to make insurance against seismic risks and natural disasters compulsory for homes and businesses, as part of the new Transformation, Recovery and Resilience Plan (PTRR). The measure was presented by the Prime Minister, Luís Montenegro, and also provides for the creation of a Disaster Fund and support for lower-income families.
Currently, around half of homes in Portugal have no insurance at all and less than 20% have earthquake cover. The aim of the new model is to strengthen the protection of property and reduce the financial impact in the event of extreme weather events.
The Government guarantees that there will be support mechanisms for vulnerable families, allowing for more universal access to compulsory insurance. The insurance sector has already reacted positively, considering that the measure brings Portugal closer to international best practice.
The proposal may represent an increase in costs for homeowners, but also a significant strengthening of the financial security of households and businesses in the face of natural and seismic risks.
https://noticias.casayes.pt/seguro-da-casa-vai-deixar-de-ser-opcional/
29 April 2026
The Government wants to make insurance against seismic risks and natural disasters compulsory for homes and businesses, as part of the new Transformation, Recovery and Resilience Plan (PTRR). The measure was presented by the Prime Minister, Luís Montenegro, and also provides for the creation of a Disaster Fund and support for lower-income families.
Currently, around half of homes in Portugal have no insurance at all and less than 20% have earthquake cover. The aim of the new model is to strengthen the protection of property and reduce the financial impact in the event of extreme weather events.
The Government guarantees that there will be support mechanisms for vulnerable families, allowing for more universal access to compulsory insurance. The insurance sector has already reacted positively, considering that the measure brings Portugal closer to international best practice.
The proposal may represent an increase in costs for homeowners, but also a significant strengthening of the financial security of households and businesses in the face of natural and seismic risks.
https://noticias.casayes.pt/seguro-da-casa-vai-deixar-de-ser-opcional/
29 April 2026
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Dui1 aute irure dolor in reprehenderit involuptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum Lorem ipsum dolor sit amet, consectetur adipisicing eli Riding Medical1
The Government wants to make insurance against seismic risks and natural disasters compulsory for homes and businesses, as part of the new Transformation, Recovery and Resilience Plan (PTRR). The measure was presented by the Prime Minister, Luís Montenegro, and also provides for the creation of a Disaster Fund and support for lower-income families.
Currently, around half of homes in Portugal have no insurance at all and less than 20% have earthquake cover. The aim of the new model is to strengthen the protection of property and reduce the financial impact in the event of extreme weather events.
The Government guarantees that there will be support mechanisms for vulnerable families, allowing for more universal access to compulsory insurance. The insurance sector has already reacted positively, considering that the measure brings Portugal closer to international best practice.
The proposal may represent an increase in costs for homeowners, but also a significant strengthening of the financial security of households and businesses in the face of natural and seismic risks.
https://noticias.casayes.pt/seguro-da-casa-vai-deixar-de-ser-opcional/
29 April 2026
Undivided estates: High Court overturns exemption and orders income tax to be levied
Undivided estates: High Court overturns exemption and orders income tax to be levied
Service title
Undivided estates: High Court overturns exemption and orders income tax to be levied
The Southern Central Administrative Court (TCAS) has ruled that the sale of specific properties belonging to an estate that has not yet been divided is subject to capital gains tax, in line with the position of the Tax Authority (AT).
The decision is based on a key distinction:
Sale of an inheritance share (overall share) → no capital gains tax payable
Sale of a specific property from the estate → capital gains tax payable
In the case under review, the heirs sold two properties in Lisbon, each with its own identification and price, leading the court to consider that this constituted a sale of property rather than a simple transfer of an inheritance share.
However, this position conflicts with that of the Supreme Administrative Court (STA), which has held that the transfer of an inheritance share should not be taxed, even if the transaction is presented as a sale of property, provided that in practice it is merely a transfer of the position in the estate.
There is currently legal uncertainty, and everything depends on how the transaction is structured:
selling a share of an estate versus selling a specific property can make all the difference to the tax payable.
21 April 2026
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Dui1 aute irure dolor in reprehenderit involuptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum Lorem ipsum dolor sit amet, consectetur adipisicing eli Riding Medical1
The Southern Central Administrative Court (TCAS) has ruled that the sale of specific properties belonging to an estate that has not yet been divided is subject to capital gains tax, in line with the position of the Tax Authority (AT).
The decision is based on a key distinction:
Sale of an inheritance share (overall share) → no capital gains tax payable
Sale of a specific property from the estate → capital gains tax payable
In the case under review, the heirs sold two properties in Lisbon, each with its own identification and price, leading the court to consider that this constituted a sale of property rather than a simple transfer of an inheritance share.
However, this position conflicts with that of the Supreme Administrative Court (STA), which has held that the transfer of an inheritance share should not be taxed, even if the transaction is presented as a sale of property, provided that in practice it is merely a transfer of the position in the estate.
There is currently legal uncertainty, and everything depends on how the transaction is structured:
selling a share of an estate versus selling a specific property can make all the difference to the tax payable.
21 April 2026
New RJUE postponed until October: Prosecutors welcome the decision
New RJUE postponed until October: Prosecutors welcome the decision
Service title
New RJUE postponed until October: Prosecutors welcome the decision
The entry into force of the revised Legal Framework for Urbanisation and Construction (RJUE) has been postponed until 1 October 2026, a decision that has been welcomed by property developers. The Portuguese Association of Property Developers and Investors (APPII) believes that the change to the timetable ensures that one of the most significant reforms for the sector can proceed with the regulatory and technological framework necessary for it to function in practice.
The decision was approved by the Council of Ministers on 23 July, with the Government justifying the postponement on the grounds that local authorities needed more time to adapt their IT platforms and implement the planned supplementary regulations.
What changes will the new RJUE bring?
APPII believes that the postponement allows for better preparation for the implementation of a reform aimed at making planning processes simpler, faster and more predictable for citizens, businesses and local authorities.
Decree-Law No. 108/2026 introduces amendments to the RJUE with the aim of reducing bureaucracy and speeding up the processing of applications. Among the main changes are the streamlining of prior notification, the reduction of administrative stages and the simplification of procedures.
The association also highlights other government measures to increase the housing supply, notably the reduction in VAT on construction and the Rental Investment Contracts (CIA), which it considers important for mobilising long-term private capital for moderate-rent housing.
Moving forward with the new scheme without all the regulatory instruments in place could create “uncertainty” amongst businesses and local authorities. “We would prefer a few extra weeks of preparation to months of uncertainty,” said Manuel Maria Gonçalves, the association’s chief executive, quoted in a press release.
https://noticias.casayes.pt/novo-rjue-adiado-para-outubro-promotores-aplaudem-decisao/
30 July 2026
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Dui1 aute irure dolor in reprehenderit involuptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum Lorem ipsum dolor sit amet, consectetur adipisicing eli Riding Medical1
The entry into force of the revised Legal Framework for Urbanisation and Construction (RJUE) has been postponed until 1 October 2026, a decision that has been welcomed by property developers. The Portuguese Association of Property Developers and Investors (APPII) believes that the change to the timetable ensures that one of the most significant reforms for the sector can proceed with the regulatory and technological framework necessary for it to function in practice.
The decision was approved by the Council of Ministers on 23 July, with the Government justifying the postponement on the grounds that local authorities needed more time to adapt their IT platforms and implement the planned supplementary regulations.
What changes will the new RJUE bring?
APPII believes that the postponement allows for better preparation for the implementation of a reform aimed at making planning processes simpler, faster and more predictable for citizens, businesses and local authorities.
Decree-Law No. 108/2026 introduces amendments to the RJUE with the aim of reducing bureaucracy and speeding up the processing of applications. Among the main changes are the streamlining of prior notification, the reduction of administrative stages and the simplification of procedures.
The association also highlights other government measures to increase the housing supply, notably the reduction in VAT on construction and the Rental Investment Contracts (CIA), which it considers important for mobilising long-term private capital for moderate-rent housing.
Moving forward with the new scheme without all the regulatory instruments in place could create “uncertainty” amongst businesses and local authorities. “We would prefer a few extra weeks of preparation to months of uncertainty,” said Manuel Maria Gonçalves, the association’s chief executive, quoted in a press release.
https://noticias.casayes.pt/novo-rjue-adiado-para-outubro-promotores-aplaudem-decisao/
30 July 2026
