Prime Minister announces new housing measures

The Prime Minister announced that the Council of Ministers will approve a set of measures in the housing sector this Thursday, including an increase in tax deductions for tenants and a reduction in fees for landlords.

"The focus is to promote affordable housing for the Portuguese, and in particular for the middle class," Luís Montenegro said this Wednesday in his opening remarks at the biweekly debate in the Assembly of the Republic.

Among the measures to be approved on Thursday, the Prime Minister highlighted four.

"For tenants, as of 2026, an increase to 900 euros and, in 2027, to 1,000 euros, of the IRS deduction for the costs of renting moderately priced housing," he said, quoted by the Lusa news agency.

For landlords, the Prime Minister pointed out "the reduction of the IRS rate from 25 to 10% on rental contracts for moderate-rent housing."

"Thirdly, the end of IRS capital gains on the sale of homes if the proceeds are reinvested in rental properties at a moderate price," he added.

As a fourth measure, he pointed out “the simplification of licensing in the legal regime for urbanization and construction, shortening deadlines and streamlining processes.”