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Affordable rental: new regime in force since 1 September, with full exemption from income tax
The Regime Simplificado de Arrendamento Acessível and the Contratos de Investimento para Arrendamento, both from Decreto-Lei n.º 97/2026, took effect on 1 September and repealed the former Programa de Apoio ao Arrendamento. Rents are exempt from IRS (personal income tax) and IRC (corporate income tax) if the contract respects the municipal rent ceiling and the minimum term, and the landlord files it with IHRU by 15 January of the following year.
New legislation
Full exemption
Contract to be filed with IHRU by 15 January
What came into force
Since 1 September 2026 the Regime Simplificado de Arrendamento Acessível — RSAA (simplified affordable rental regime) and the regime of Contratos de Investimento para Arrendamento — CIA (investment contracts for rental) have been in force, approved as annexes iii and i to Decreto-Lei n.º 97/2026, de 20 de maio. On the same date, Decreto-Lei n.º 68/2019 and Decreto-Lei n.º 69/2019, both of 22 May, which underpinned the former Programa de Apoio ao Arrendamento (rental support programme), were repealed (article 18(1)).
The benefit is exemption, not a reduced rate
Article 6(1) of the RSAA is blunt: rental income from residential letting, letting for residential subletting and residential subletting contracts that meet the conditions of the regime is exempt from IRS (personal income tax) and IRC (corporate income tax).
One proviso that tends to go unnoticed: if the taxpayer opts to aggregate rental income, the exempt income is compulsorily aggregated for the purpose of determining the rate applicable to their remaining income (article 6(2)). The exemption does not disappear, but it pushes up the rate on everything else.
The two conditions
| Condition | Rule |
|---|---|
| Monthly rent | Equal to or below the maximum ceiling per property type, set by portaria (ministerial order) on the basis of 80% of the median rent values published by INE, I. P., for the municipality where the property is located |
| Minimum contract term | 3 years for permanent residence; 3 months for temporary residence |
The ceiling may also take into account features of the property, in particular its energy efficiency rating and the availability of private parking, and is updated automatically by the factor in article 24 of the NRAU (urban tenancy law). It does not include the expenses or charges payable under article 1078 of the Código Civil (civil code).
Source: Diário da República — Decreto-Lei n.º 97/2026, de 20 de maio