For tenants and landlords. Prime Minister unveils four housing measures

Returning to the biweekly debates after the parliamentary recess, Luís Montenegro unveiled four measures that will be approved this Thursday in the Council of Ministers regarding housing.

"For tenants, as early as 2026, there will be an increase to 900 euros, and in 2027 to 1000 euros, of the IRS deduction for rental costs for moderately priced housing," revealed the Prime Minister.

Furthermore, for landlords, the Government will approve “a reduction in the IRS rate from 25% to 10% on moderate-rent housing contracts.”

As well as “the end of IRS capital gains on the sale of housing if the value is invested in properties for rent at a moderate value” and “the simplification of licensing in the urbanization and construction legal regime, shortening deadlines and streamlining processes”.

It was with the announcement of these four measures, which form part of a "significant and broad set of measures in the housing sector", that the Prime Minister began his speech in the plenary session this Tuesday, which marks the return to biweekly debates after the parliamentary recess.

The measures in question, he said, "focus on promoting controlled housing for the Portuguese, and in particular, for the middle class." They "reinforce and complement the set of measures we approved last week, focused on financing public housing and making state assets available," and which include, among others, a €1.34 billion financing line from the European Investment Bank (EIB) for the construction and renovation of 12,000 public rental housing units .

After a brief look at measures taken in other areas, such as education and healthcare, where he used the increase in the number of consultations and surgeries, and the reduction in the average waiting time in emergency rooms, to argue that, despite the difficulties, there has been "important progress," the prime minister moved on to the economic chapter, where he has more reasons to smile.

"During my recent visit to China and Japan, I also confirmed, once again, Portugal's enviable international reputation," said the head of government, particularly regarding the country's economic and financial credibility. "In an international context of insecurity and uncertainty, generated by wars and trade conflicts, Portugal is increasingly a recognized beacon of stability and reliability, both in Europe and globally," he emphasized.

In Europe, he continued, "we are one of the countries with the best economic and financial performance. In just two weeks, we have seen two rating upgrades for the Portuguese Republic from international rating agencies." These upgrades are justified "by our budgetary policy and also by our economic performance."

Acknowledging that the situation is "indeed very challenging," Montenegro reaffirmed that the government maintains its main objectives. These are: "To achieve economic growth above the EU average by 2025, close to 2%, and a surplus of around 0.3%," as well as "the continuation of a downward trajectory in the public debt ratio."

"Gentlemen, these goals are achievable," he assured, backing this confidence with the data released yesterday by the INE (reporting that the economy grew 2.1% in 2024 and debt fell 3.3 pp and "the surplus exceeded all forecasts, including that of the Government itself").

"The demands are high, as we well know, but there is no reason to doubt the capacity of the Portuguese economy," the Prime Minister emphasized, also highlighting employment figures (in July 2025, more than 5.2 million people were employed, the highest figure since February 1998) and the unemployment rate (which fell to 5.8% compared to July 2024). "And even the youth unemployment rate, which remains high and worrying, and which we are focused on reducing, stood at 18.9%, down 2.3 percentage points compared to the same period last year."

Regarding the 2026 State Budget, which will begin to be discussed in Parliament next month, Luís Montenegro assured that the Government "will do everything possible to guarantee the stability and continued good economic performance of the country."

The Prime Minister emphasized the Government's "spirit of openness and democratic dialogue," having met with all parties with seats in parliament regarding the 2026 State Budget. But he also noted: "The AD Government has a program, and that program must be implemented. A program that, having been voted on in this chamber and not been rejected, has earned the trust of the honorable members of parliament to be implemented. This is, therefore, not a time for partisan political agendas, often selfish, and much less a time for political instability."

That said, “from all parties”, the PSD/CDS Government expects a “sense of responsibility” and “willingness to put national interests and the interests of the Portuguese people ahead of any private interest”.

"The Portuguese people wouldn't understand it any other way, because Portugal must continue to be a beacon of stability. The country cannot and should not be held hostage to political crises dictated by partisan or even personal whims," ​​Montenegro emphasized, emphasizing that the government will maintain "the reformist trajectory and the path of structural transformation in Portugal." He concluded: "With this government, change will continue."

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