The Government has approved a set of tax relief measures aimed at boosting housing supply, specifically by encouraging construction.
New Housing Tax Package
The Government has approved a new set of tax incentives for the construction, renovation, purchase, and rental of housing.
Among the main measures are:
- New reinvestment scheme
- Suspension of the reinvestment deadline
- Separate 10% tax on moderate rents
- Taxation of only 50% of certain property income for Corporate Income Tax (IRC) and category B of Personal Income Tax (IRS)
- 6% VAT on certain construction and renovation projects
- Partial VAT refund scheme for the construction of owner-occupied, permanent housing
- Tax benefits regarding Personal Income Tax (IRS), Corporate Income Tax (IRC), Real Estate Transfer Tax (IMT), and Stamp Duty;
- Creation of the CIA and RSAA schemes.
The Investment Lease Agreements (CIA) and Simplified Affordable Lease (RSAA) schemes will be analyzed separately in future publications. The measures will take effect in phases between 2026 and 2032.
We analyze the main changes below.
This Spear Point was prepared by António Gaspar Schwalbach and Maria Francisca Quaresma.
For further information, please contact Spear Legal at info@spearlegal.pt.
