Decree-Law 97/2026 (20 May 2026) is Portugal''s housing fiscal package. Key measures: 6% VAT on housing construction/renovation, two new accessible-rental regimes (CIA and RSAA), a stronger IRS rent deduction, and a new 7.5% IMT (transfer tax) rate for non-resident buyers. Most measures take effect on 1 September 2026.

6% VAT on construction

Reduced 6% VAT (vs 23%) on construction/renovation of housing for own permanent residence (sale up to €660,982) or rental (rent up to €2,300/month), for works started between 25 Sep 2025 and 31 Dec 2029.

CIA and RSAA

CIA (Investment Contracts for Rental): contracts with IHRU up to 25 years, with IMT, Stamp Duty and IMI exemptions plus reduced VAT, for controlled-price rental housing (min. 70% of built area for housing). RSAA (Simplified Accessible Rental Regime): full IRS/IRC exemption on rental income, with rent capped at 80% of the INE median rent per m² per municipality.

7.5% IMT for non-residents

A 7.5% IMT rate now applies to purchases of residential urban property by non-residents — unless the buyer was, or becomes within 2 years, a Portuguese tax resident. Foreign buyers should reassess their acquisition structure. See our real estate accounting and IFICI support, or book a free consultation.