Council of Ministers approves housing measures

The Council of Ministers approved today a group of measures in housing.

Among the decisions are the following:

• VAT reduction to 6% for building homes for sale up to 648 thousand euros or, in the case of rentals, for rents up to 2,300 euros. This tax scheme is in force until 2029.

• A rise in the Municipal Tax on Property Sales (IMT) when purchased by citizens not residing in Portugal, excluding emigrants.

• The surcharge on Property Tax (AIMI) is waived for homes to be rented out up to 2,300 euros.

• A rise on income tax deductions for housing rents: 900 euros in 2026 and 1,000 euros in 2027.

• A reduction in income tax for landlords who have moderate rents: from 25% to 10%.

• Assistance with regard to temporary lodging for construction workers.

• Works underway with the banking sector to make it easier to access mortgages and financing for construction.

These measures are included in a wider group of initiatives in housing, in articulation with the Recovery and Resilience Facility with the aim of increasing housing supply at affordable prices.