Portugal: 25% tax on residential rent, lower for long leases, 10% for moderate rent
Under art. 72 of the IRS Code, residential rental income is taxed at 25%, other rent at 28%; for long leases the rate is reduced by 10, 15 or 20 points. Under Decree-Law 97/2026, moderate rent (up to 2.5 times the monthly minimum wage) is taxed at 10% from January 1, 2026 to December 31, 2029.
What this changes in the calculation
Tax on residential rent in Portugal is 25% before reductions, not 28%; 10% for moderate rent.
- Source
- Portal das Finanças
- Status
- verified
- Published