These positions were expressed by the vice-president of the PSD parliamentary group, Alexandre Poço, at the Assembly of the Republic, just hours after the executive leader, Luís Montenegro, announced a package of housing sector measures following the Council of Ministers meeting.
Speaking to journalists, the Social Democratic Party leader noted that after the Government initiated a process to reduce corporate tax and measures to increase public housing supply, the PSD/CDS executive has now moved towards increasing IRS deductions for housing expenses.
On Wednesday, during the opening of the biweekly debate in parliament, the Prime Minister announced that for tenants, by 2026, there would be an increase to 900 euros, and by 2027, to 1,000 euros in IRS deduction for housing rents at moderate prices.
At the press conference, Alexandre Poço also highlighted that for investors and homeowners, “the Government has decided on a set of bold, ambitious measures that cover the entire middle class.”
He mentioned a tax exemption for those who rent out their properties at 20% below the median level of the respective municipality, and also the reduction of IRS from 25% to 10% for owners who decide to place their properties on the rental market up to a value of 2,300 euros.
“As outlined in the AD program, we will reduce VAT in construction—a measure aimed at houses valued at around 650 thousand euros. We are adopting measures that not only benefit tenants but also those who wish to secure a rental contract. We believe that these fiscal incentives given to property owners will benefit the Portuguese middle class, leaving no one behind,” he asserted.
When questioned about the Government considering up to 2,300 euros per month as a moderate rent, Alexandre Poço argued it was an adaptation to market values prevalent in areas such as Lisbon, Porto, or Faro.
In his view, the measure could cover “freelancers, teachers, middle management professionals,” or “many people who sometimes need to move to a larger city and face greater financial strain.”
“This incentive is provided to ensure more houses are available in the rental market. We remain focused on supply,” he emphasized.
According to the vice-president of the PSD parliamentary group, the estimate is that the current measures “could inject around 45,000 houses into the rental market” over the coming years.
“Public policy measures take some time to have an effect, but we consider this a real shock to the rental market. By sending this clear signal, we are telling the Portuguese middle class that we are doing everything we can to make more housing available,” he added.
Today, at the end of the Council of Ministers, Luís Montenegro announced that the Government will reduce the VAT rate to 6% for the construction of houses for sale priced up to 648,000 euros or, if intended for rent, with rents up to 2,300 euros—a fiscal regime that will be in force until 2029.
On the other hand, the minimum VAT rate of 6% will also apply to the “construction and rehabilitation of buildings” for rentals up to the value of 2,300 euros.
