Renting in 2026: rents rise 2.24% and tenants deduct up to €900 in IRS

The annual rent-update coefficient for 2026 was set at roughly 2.24% — the maximum a landlord may apply to existing contracts. In parallel, tenants can now deduct up to €900 of rent on their income-tax return.

For investors (landlords)

A contained update helps forecast returns, but it also shows rent doesn't rise "at will": a rental's yield is planned with margin, not optimism. And there are tax incentives for moderate rents worth knowing before you buy to let.

For those renting while they buy

Many of our clients rent for the first months in Portugal while they search. The IRS deduction eases that period a little — a detail that adds up in the total cost of the move.

Thinking of buying to let? See mortgages for non-residents and talk to us.

Source: 2026 rent-update order (Portaria), via idealista. Confirm the deduction applicable to your case. Our analysis.