{"id":5129,"date":"2026-05-28T06:10:52","date_gmt":"2026-05-28T06:10:52","guid":{"rendered":"https:\/\/www.nominaurea.pt\/?p=5129"},"modified":"2026-05-22T09:29:08","modified_gmt":"2026-05-22T09:29:08","slug":"portugal-new-housing-measures-in-2026-what-changes-in-income-tax-vat-and-capital-gains","status":"publish","type":"post","link":"https:\/\/www.nominaurea.pt\/en\/noticias\/portugal-new-housing-measures-in-2026-what-changes-in-income-tax-vat-and-capital-gains\/","title":{"rendered":"Portugal: New Housing Measures in 2026 \u2013 What Changes in Income Tax, VAT and Capital Gains"},"content":{"rendered":"<p>Housing remains one of the central issues in the Portuguese economy. Rising property prices, difficulty in accessing credit and a shortage of supply in the rental market have led the Government to introduce new fiscal and legislative measures designed to stimulate construction, improve access to housing and promote more affordable rental prices.<\/p>\n<p>These measures represent one of the most significant tax changes in recent years in Portugal\u2019s real estate sector and will have a direct impact on property owners, investors, construction companies, landlords and households.<\/p>\n<h2><strong>VAT at 6% on Construction and Refurbishment<\/strong><\/h2>\n<p>One of the most significant measures is the application of the reduced VAT rate of 6% to certain construction and refurbishment works for properties intended as primary residences or for rental at moderate prices.<\/p>\n<p>Until now, many construction and refurbishment works were subject to the standard VAT rate of 23%, significantly increasing the cost of property developments. With this change, the aim is to reduce construction costs and encourage an increase in housing supply.<\/p>\n<p>This reduction in VAT may lead to lower final costs for buyers and investors, making some projects more financially viable.<\/p>\n<p>Additionally, the measure may have a positive impact on:<\/p>\n<ul>\n<li>Urban regeneration projects;<\/li>\n<li>Affordable housing construction;<\/li>\n<li>Property investment for rental purposes;<\/li>\n<li>Renovation of vacant properties;<\/li>\n<li>Growth in the construction sector.<\/li>\n<\/ul>\n<p>However, the application of the reduced rate depends on compliance with certain legal requirements, particularly relating to property value thresholds and residential use.<\/p>\n<h2><strong>Income Tax at 10% for Moderate Rents<\/strong><\/h2>\n<p>Another high-impact measure is the reduction of the flat-rate income tax on rental income from 25% to 10% for contracts classified as moderate rent.<\/p>\n<p>The aim is to incentivise landlords to make properties available on the rental market at more affordable prices, thereby promoting greater stability in the housing sector.<\/p>\n<p>To benefit from this reduced rate, contracts must meet specific criteria, including:<\/p>\n<ul>\n<li>The property being used as a primary residence;<\/li>\n<li>Compliance with maximum rent limits set by the Government;<\/li>\n<li>A minimum contractual duration;<\/li>\n<li>Fulfilment of tax and reporting obligations.<\/li>\n<\/ul>\n<p>In practice, this change may represent a significant tax saving for landlords.<\/p>\n<p>For example, a property owner with annual rental income of \u20ac24,000 could benefit from a substantial reduction in the tax payable, increasing the net return on their investment.<\/p>\n<p>This measure may also contribute to:<\/p>\n<ul>\n<li>An increase in rental supply;<\/li>\n<li>Reduced pressure on rental prices;<\/li>\n<li>Greater formalisation of the market;<\/li>\n<li>Improved contractual stability between landlords and tenants.<\/li>\n<\/ul>\n<h2><strong>New Rules for Capital Gains<\/strong><\/h2>\n<p>The new measures also include important changes to the taxation of real estate capital gains.<\/p>\n<p>In certain cases, capital gains tax exemptions may apply where proceeds from the sale of property are reinvested in housing intended for rental at moderate prices.<\/p>\n<p>The objective is to channel investment into the housing market and increase the availability of rental properties.<\/p>\n<p>Reinvestment rules continue to play a central role in the tax treatment of capital gains, making it essential to assess:<\/p>\n<ul>\n<li>The type of property sold;<\/li>\n<li>The purpose of reinvestment;<\/li>\n<li>Applicable legal timeframes;<\/li>\n<li>The nature of the property;<\/li>\n<li>Supporting documentation.<\/li>\n<\/ul>\n<p>These changes require careful tax and technical oversight, as any non-compliance may result in the loss of tax benefits.<\/p>\n<h2><strong>Incentives for Rental and Affordable Housing<\/strong><\/h2>\n<p>The new legislative package also seeks to promote affordable housing through a broad range of fiscal and administrative incentives.<\/p>\n<p>Key objectives include:<\/p>\n<ul>\n<li>Bringing more properties onto the market;<\/li>\n<li>Encouraging long-term rental contracts;<\/li>\n<li>Reducing construction and refurbishment costs;<\/li>\n<li>Promoting greater stability in the property sector;<\/li>\n<li>Supporting young people and families in accessing housing.<\/li>\n<\/ul>\n<p>At the same time, there is an intention to simplify administrative procedures and accelerate property development projects, particularly in urban areas where housing demand remains high.<\/p>\n<h2><strong>Impact on Businesses and Investors<\/strong><\/h2>\n<p>These new measures may create important opportunities for construction companies, property developers, investors and property owners.<\/p>\n<p>The reduction in VAT and in the taxation of rental income may improve the profitability of property projects, particularly in the residential rental segment.<\/p>\n<p>For businesses with property investments, it is essential to analyse:<\/p>\n<ul>\n<li>The tax framework of projects;<\/li>\n<li>Investment structures;<\/li>\n<li>The impact on corporate tax and VAT;<\/li>\n<li>The accounting treatment of transactions;<\/li>\n<li>Applicable tax benefits.<\/li>\n<\/ul>\n<p>A proper tax and accounting analysis can make the difference between an efficient investment and one that is fiscally disadvantageous.<\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>The new housing measures in Portugal represent a clear effort to increase supply, promote rental at moderate prices and reduce the costs associated with construction and real estate investment.<\/p>\n<p>The reduction of VAT to 6%, the 10% income tax rate for moderate rents and the new capital gains rules may have a significant impact on the Portuguese property market in the coming years.<\/p>\n<p>However, the practical application of these measures requires careful technical analysis, as the tax benefits depend on meeting various legal and fiscal requirements.<\/p>\n<p>Businesses, investors, property owners and households should closely monitor these changes to ensure they take full advantage of the available incentives.<\/p>\n<h3><strong>How <a href=\"https:\/\/www.nominaurea.pt\/en\/\">Nominaurea<\/a> Can Help<\/strong><\/h3>\n<p><a href=\"https:\/\/www.nominaurea.pt\/en\/\">Nominaurea<\/a> continuously monitors tax and accounting changes affecting the real estate and housing sector in Portugal.<\/p>\n<p>Our team provides specialised support in:<\/p>\n<ul>\n<li>Property tax advisory;<\/li>\n<li>Tax planning for investments;<\/li>\n<li>Accounting support for businesses and investors;<\/li>\n<li>Tax treatment of rental income;<\/li>\n<li>Analysis of capital gains and reinvestment;<\/li>\n<li>Application of housing tax incentives;<\/li>\n<li>Accounting and tax management of property projects.<\/li>\n<\/ul>\n<p>In a context of constant legislative change, having expert technical support is essential to ensure tax compliance, optimisation and more efficient financial decision-making.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Housing remains one of the central issues in the Portuguese economy. Rising property prices, difficulty in accessing credit and a shortage of supply in the rental market have led the Government to introduce new fiscal and legislative measures designed to stimulate construction, improve access to housing and promote more affordable rental prices. These measures represent [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5123,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publications"],"_links":{"self":[{"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/posts\/5129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/comments?post=5129"}],"version-history":[{"count":1,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/posts\/5129\/revisions"}],"predecessor-version":[{"id":5130,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/posts\/5129\/revisions\/5130"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/media\/5123"}],"wp:attachment":[{"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/media?parent=5129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/categories?post=5129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nominaurea.pt\/en\/wp-json\/wp\/v2\/tags?post=5129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}