"Mais Habitação" Package

On September 25, the Government approved, in the Council of Ministers, a package of measures aimed at responding to the housing crisis currently affecting our country.

What are the main objectives of these measures?

The measures aim to promote access to home ownership, affordable rentals, and incentives for construction. In addition, the package seeks to increase the supply of affordable housing through the introduction of the concept of moderate rents. It also aims to strengthen support for young people wishing to buy their first home and to discourage speculation and external pressure on the real estate market.

What support will be given to tenants?

Tenants will now be able to deduct rent expenses from their income tax (IRS) up to a total of €900 in 2026 and €1,000 in 2027. Currently, this limit is set at €700.

And for landlords?

Landlords will also benefit from incentives, such as the reduction of the IRS tax rate from the current 25% to 10% for rental contracts with moderate rents. Another relevant measure in this context is the exemption from the additional property tax (AIMI) for properties rented at moderate rates.

What is considered a moderate rent? Will it no longer be possible to charge higher rents?

Moderate rents are capped at €2,300 per month. However, this is not the maximum rent allowed overall — higher rents remain perfectly legal, though they will not benefit from the incentives provided in this package.

Are there changes to VAT rates on construction? Until when?

Yes. In terms of VAT, housing construction with a sale price of up to €648,000 will now benefit from the reduced rate of 6%, as will construction intended for moderate rentals. This regime will remain in force until 2029.

Are there changes to capital gains rules?

Yes. A capital gains exemption has been approved for reinvestment in the purchase of properties intended for rental at moderate rates.

Are there changes for young people under 35 who wish to buy a home?

The maximum amount of the public guarantee for home purchases by young people has been increased to €1,150,000, allowing the State to act as guarantor for up to 15% of the transaction value. This measure applies to contracts signed until the end of 2026 — this time limit has not changed.

Are licensing and mortgage processes still lengthy and complex?

Urban planning and licensing procedures will be simplified and accelerated. In the same vein, work is underway with the banking sector to make access to mortgage credit and construction financing more flexible.

Does this package include the purchase of housing by non-residents?

Non-residents wishing to buy a house in Portugal will face an increase in the property transfer tax (IMT). This measure does not apply to Portuguese emigrants.

Are these measures already in force?

No. The package has only been approved by the Council of Ministers and may still undergo significant changes during its discussion and voting in Parliament.