Decree-Law no. 97/2026 introduces a new integrated tax incentive framework for housing, impacting construction, acquisition, and leasing activities.
The regime is built around the key concept of “moderate value”, which determines access to most tax benefits, and includes a coordinated set of measures, notably:
- 6% VAT rate for construction and refurbishment
- VAT refund for self-construction
- Reduced taxation on rental income
- Capital gains exemption, subject to reinvestment conditions
- New Simplified Affordable Rental Regime (RSAA)
- Investment Agreements for Rental (CIA)
The framework applies through to 2032 and is expected to significantly influence real estate structuring and investment decisions.
Please refer to the attached document for a detailed analysis.