Affordable rent: new regime allows owners to be exempt from personal income tax or corporate income tax

Since September 1, 2026, the rental market in Portugal has included a new incentive for owners who make properties available for housing at values below the market prices practiced for rent.

This measure is part of the Simplified Affordable Rental Regime (RSAA), which provides that income obtained through affordable rental contracts is subject to IRS or IRC exemption, upon compliance with the established requirements.

This regime aims to make affordable renting attractive to owners and real estate investors.

How does the Simplified Affordable Rental Regime work?

The RSSA seeks to encourage the availability of more properties on the rental market at affordable prices, offering, in return, tax benefits to owners.

To benefit from the regime, the rent must respect the established limits, considering as a reference 80% of the median rent values per square meter published by INE for the municipality where the property is located.

There is no single rent amount applicable to the entire country. The location of the property determines the calculation of the applicable limit, but there may also be other criteria associated with the characteristics of the property.

Exemption from IRS or IRC on rents

When the conditions provided for in the regime are met, property income from the lease agreement may be exempt from IRS or IRC.

For owners, this tax advantage may partially compensate for the practice of a rent lower than the usual market values.

For investors, it means that the analysis of the profitability of a property intended for rental should now consider not only the monthly value of the rent, but also the possible tax savings provided by the new regime.

What is the minimum duration of contracts?

The duration of the contract is another requirement to consider.

In the case of properties intended for permanent residence, the contract must have a minimum duration of three years.

The regime also contemplates certain situations of temporary residence, such as some contracts for students or displaced workers, with minimum periods that can start in three months, provided that the applicable conditions are met.

How to join the RSAA?

To join the Simplified Affordable Rental Regime, you must access the Institute for Housing and Urban Rehabilitation (IHRU).

The owner must submit the rental contract through the platform, in order to verify compliance with the necessary conditions to benefit from the tax exemption.

Thus, before entering into a contract, you should confirm the rent limit applicable to the property and the other requirements in force, to avoid setbacks or non-conformities.

A new opportunity for real estate investment?

This regime adds a new dimension to be analyzed in an investment in the rental market. And, therefore, each investment should be analyzed individually.

It is interesting to note that, for certain properties, a more moderate income associated with tax exemption may be a relevant strategy, considering the other variables such as: the acquisition price, location, financing, expenses and estimated profitability.

At Mulberry Real Estate, we follow the evolution of the real estate market and its framework to assist owners and investors in making strategic decisions.