The Prime Minister, Luís Montenegro, announced that the Council of Ministers will approve a set of housing measures this Thursday, including increased tax deductions for tenants and reduced rates for landlords.
“The focus is on promoting moderately priced housing for the Portuguese people, particularly for the middle class,” stated Luís Montenegro during the initial speech at the biweekly debate in the Assembly of the Republic on Wednesday.
What measures are expected?
Among the measures to be approved this Thursday, the Prime Minister highlighted four.
- “For tenants, starting in 2026, an increase to 900 euros and, in 2027, to 1,000 euros of IRS deduction on costs associated with rents for moderately priced housing,” he said.
- For landlords, the Prime Minister indicated “a reduction in the IRS rate from 25 to 10% on lease agreements for housing with moderate rents.”
- “Thirdly, the elimination of capital gains tax on the sale of properties if the amount is reinvested in moderately priced rental properties,” he added.
- As a fourth measure, he pointed out “the simplification of licensing in the legal framework of urban planning and building, shortening deadlines and streamlining processes.”
The public housing rate in Portugal remains among the lowest in Europe, around 2%, revealing “chronic disinvestment” by successive governments in promoting affordable housing, according to a report released today.
Lusa | 06:25 – 25/09/2025
“Reformist momentum is the essence of the project”
In his ten-minute initial intervention, Montenegro argued that “the reformist momentum is the essence of the project” of the XXV Government and provided examples in other areas.
“I highlight, among others, and in these little more than 100 days of mandate, the reduction of the tax burden on work, the increase currently being implemented for the minimum wage and also the average wage, the increase in the solidarity supplement for the elderly and pensions, and the salary appreciation of state careers,” he enumerated.
Among the measures highlighted by Montenegro at the beginning of his second term are “regulation with humanity and an ability to integrate” in immigration, “the enhancement of security with community policing and special preventive and inspection operations,” and the privatization of TAP.
In education, the Prime Minister spoke of “restoring social normality at the start of the school year,” while in health, he stated that the Government is continuing “the structural transformation effort.”
“With some important progress achieved despite the difficulties we do not hide: the 2025 numbers compared to the same period in 2024 show an increase of 2.7% in consultations, 5.4% in surgeries, 5.8% in cancer surgeries, and a reduction of 16% in the average waiting time in emergency rooms,” he said.
The return of debates to Parliament occurred on Wednesday afternoon, with the Government receiving criticism from various parties but warned from the start that “the country cannot, nor should it, be held hostage by political crises dictated by partisan or even personal whims.”
Ana Teresa Banha with Lusa | 19:42 – 24/09/2025
