New 2026 tax incentives: 6% VAT on construction and rental benefits
Legislation · 26 July 2026 · 3 min read
A new piece of legislation (Decree-Law No. 97/2026) creates tax incentives for housing, rental and real-estate investment, with benefits across VAT, IRS, IRC, IMT, Stamp Duty, IMI and AIMI.
Among the most noted measures: building homes for sale below €648,000, or for moderate-rent letting, may qualify for a reduced 6% VAT (instead of 23%). There's also an AIMI exemption for residential property leased at rents up to €2,300.
Why it matters to you
Incentives like these tend to pull new supply into the market and shift prices in specific segments. For investors, it changes the maths; for owner-occupiers, it can open options in new construction at more controlled prices.
The devil, as always, is in the conditions. Before counting on any benefit, confirm eligibility case by case — we help you read it.
Source: PwC Portugal (DL 97/2026). Confirm eligibility case by case. Our analysis.
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