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Investment-for-rent contracts: the application rules are now set
Portaria n.º 447-A/2026/1, in force since 1 October, sets who can sign an investment-for-rent contract (CIA) with the State, how to apply through IHRU and what the investor must meet over 10 to 25 years.
New legislation
10 to 25 years
Portaria n.º 447-A/2026/1 of 30 September (implementing order) regulates the investment-for-rent contracts (CIA, contratos de investimento para arrendamento) created in Annex I to Decreto-Lei n.º 97/2026 of 20 May (Portuguese housing supply law). The regime has applied since 1 September, but it was not yet clear who could apply or how. The order came into force on 1 October.
What a CIA is
It is a contract between the investor and IHRU (the Portuguese housing institute), acting for the State, lasting up to 25 years, which locks in tax benefits for investment in buying, building or refurbishing buildings for residential letting (or letting for residential subletting). If future legislation on rents upsets the investment’s economic and financial balance, the investor is entitled to compensation (art. 5 of Annex I).
Benefits set out in the decree-law
| Tax | Benefit |
|---|---|
| IMT (property transfer tax) on purchase | Exemption |
| Imposto do Selo (stamp duty) on purchase | Exemption |
| IMI (annual property tax) | Exemption for up to 8 years; then a 50% rate reduction until the contract ends |
| Additional IMI | Exemption for the life of the contract |
| VAT on construction contracts | Reduced rate (item 2.42.2) |
| VAT on architecture and engineering projects | 50% refund |
| Stamp duty on alternative investment funds (item 29.2) | 50% reduction |