Although the reduction in the tax rate for landlords, from 25% to 10%, on so-called moderate rents (up to 2,300 euros per month) is set to take effect in 2026, it will only be reported in the annual tax return filed from April of the following year.
The same applies to the rent deduction for tenants, which is capped at 900 euros annually and will only be declared in the subsequent year.
The Minister of State and Finance, speaking during the presentation of the OE2026 proposal at the Ministry of Finance in Lisbon, stated that the fiscal measures for housing are “in the final legislative process.”
