Adjustments to the Mais Habitação 2026 programme: The new benefits of long-term rentals in Portugal

Faced with a housing crisis that has profoundly reshaped the Portuguese property landscape in recent years, the Portuguese government has had to rethink its approach. If you are a host, you have most likely been following the heated debates surrounding the first wave of reforms with great interest. Today, in the autumn of 2026, the legislative landscape is clearing up and offering new opportunities. At Roomlala, we support thousands of hosts and tenants every day, and we have analysed these recent developments in detail for you. The government's objective is clear: to provide fiscal incentives for hosts to move away from mass tourism, which has become too restrictive, in favour of long-term rental in Portugal.

In this comprehensive article, we will break down the major adjustments made by the new government plan, which replaces the former Mais Habitação 2026 programme. From drastic tax cuts to full exemption under certain conditions, discover how renting out your property or even just a room has now become one of the most profitable and secure options on the market.

Read also: Portugal 2027 Budget: New tax incentives for renting out your rooms on Roomlala, IRS exemption and reduction for property rentals in Portugal: What's new for 2026 and Law 31 in Quebec in 2026: Impacts on lease assignment and alternative solutions

From Mais Habitação 2026 to Construir Portugal: What really changes for hosts

For a long time, the term Mais Habitação was a source of concern for many hosts. Indeed, the initial versions of this programme imposed rules perceived as too restrictive, particularly a strict rent freeze on new contracts, which had the perverse effect of freezing the market and driving away investors. However, faced with the urgency of the situation, the government has made a major strategic shift.

Today, legally speaking, the term Mais Habitação 2026 has become obsolete. It has been officially replaced by the Construir Portugal programme. This new action plan, enacted by Decree-Law no. 97/2026 promulgated in May 2026, marks a paradigm shift. The State has realised that it cannot solve the housing crisis without the active cooperation of private hosts. As such, the strict rent freeze has been lifted to restore confidence among landlords.

The main focus of Construir Portugal is the fiscal carrot rather than the stick. The goal is to massively boost long-term rental in Portugal by making this option financially more attractive than short-term tourist rentals (such as Alojamento Local), which are also facing increasingly heavy local restrictions. For you, as a host, this is the perfect time to rethink your rental strategy and secure your income in the long term without being crushed by the tax burden.

At Roomlala, we are already seeing a significant increase in the number of hosts removing their properties from tourist platforms to offer them as shared housing or homestays. This transition is not only supported by law, but it also meets extremely strong local and international demand (students, young professionals, digital nomads).

Revolution in Portuguese host taxation: Drastically reduced tax rates

The shift from 25% to 10% IRS for moderate rents

The flagship measure of autumn 2026 concerns the reduction of taxation for hosts in Portugal. Historically, rental income was heavily taxed, which discouraged making affordable properties available on the market. Decree-Law no. 97/2026 changes the game: the personal income tax (IRS) rate applicable to rental income is dropping from 25% to a very advantageous rate of 10%.

To benefit from this reduced rate, several simple conditions must be met. First, the monthly rent must be considered "moderate", meaning it is capped at 2,300 euros per month. Second, the lease signed must have a minimum duration of 3 years. This measure clearly aims to stabilise the market and offer residential security to tenants, while guaranteeing a very attractive net return for hosts.

But the real good news, confirmed by a tax clarification published in September 2026, concerns partial rentals. If you decide to rent a room in Lisbon or Porto or any other city in the country, you are fully eligible for this 10% rate. Furthermore, renting an apartment or a room to a company to house one of its employees also allows you to benefit from this tax advantage.

Concrete example: Let's take the case of Maria, who owns a large apartment in Porto. Until 2025, she was renting two rooms to students for a total of 900 € per month and paying 25% IRS on this income. With the new 2026 law, by signing 3-year leases via Roomlala, her tax rate drops to 10%. She thus saves several hundred euros per year, automatically increasing her net profitability without having to raise the rent for her tenants.

The Simplified Affordable Rental Scheme (RSAA): Full tax exemption

While the 10% rate is already excellent news, the government has gone even further with the creation of the Simplified Affordable Rental Scheme (RSAA), which came into effect on 1 September 2026. This scheme is the direct response to the housing shortage for the middle class and young professionals.

The principle of the RSAA is extremely powerful: it offers total tax exemption (0% IRS) on rental income. To be eligible, the host must offer a rent that is at least 20% lower than the median value of the local market (i.e., a rent below 80% of the local median).

Point of vigilance: Be aware that this exemption is not automatic. At Roomlala, we want to inform you precisely about the legal steps. To benefit from the RSAA, your rental contract must be registered on the official IHRU (Institute for Housing and Urban Rehabilitation) portal. In addition, the exact rent caps that determine the local median depend on local ordinances (the portarias), the publication of which is spread throughout the end of 2026. It is therefore crucial to check the cap applicable to your municipality (concelho) before setting your price.

Use case: Joao owns a one-bedroom apartment in Lisbon. The median rent in his neighbourhood is valued at 1,200 €. If he decides to rent his property at 950 € (i.e., below the 80% median threshold), he will pay absolutely no tax on this income. Although the gross rent is slightly lower than what he might expect on the open market, the net rent (after taxes) that ends up in his pocket is significantly higher. It is a formidably effective tax strategy.

Tenants and hosts: A system that is finally a win-win

Increased tax benefits for tenants

For a rental market to be healthy, both supply and demand must benefit. The Construir Portugal programme has not forgotten about tenants, who are facing cost-of-living inflation. To help them afford rent and to increase the solvency of demand, the government has increased the tax deductions they can benefit from.

As a result, tenants are seeing their tax deduction cap on rent (deductible from their own IRS) increase significantly. This cap is rising to 900 euros for the 2026 tax year and will reach 1,000 euros from 2027. This measure restores purchasing power to tenants.

For you, as a host, this is excellent indirect news. A tenant who benefits from significant tax deductions is a more financially stable tenant, which drastically reduces the risk of non-payment. At Roomlala, we promote this relationship of trust: by offering properties or rooms with proper contracts, you enable your tenants to benefit from this aid, while securing your investment.

The end of the strict rent freeze: The return of confidence

As we mentioned, one of the biggest fears linked to the former Mais Habitação 2026 project was the drastic limitation on rent increases during changes of tenants or lease renewals. This mechanism had paralysed many hosts, who were terrified of seeing the profitability of their property frozen for decades despite inflation.

The government has listened to these fears. The lifting of this strict freeze as part of Construir Portugal is a strong signal sent to investors and private hosts. The market is regaining a certain amount of freedom, conditioned by tax incentives rather than punitive obligations.

This restored flexibility allows hosts to adapt to economic realities while being rewarded if they choose moderate pricing. It is in this climate of renewed confidence that room rentals and shared housing are becoming the most agile and protective solutions in 2026.

How to optimise your rental with Roomlala in light of the new laws?

As you can see, taxation for hosts in Portugal has never been more favourable for those who choose long-term rental. But how can you take advantage of it concretely without getting lost in administrative tangles? That is where Roomlala steps in to simplify your life.

If you have a spare room, now is the time to take the plunge. Renting out a room in Lisbon, Porto, Coimbra, or Faro has become a real fiscal breeze. By using Roomlala, you have access to a community of verified tenants (students, temporary workers, expats). We advise you to favour medium-to-long-term leases (more than 3 years) to immediately unlock the reduced 10% IRS rate.

To ensure you are compliant and benefit from the 0% tax Simplified Affordable Rental Scheme (RSAA), we recommend that you:

• Check your municipality's portarias to find out the exact rent cap (80% of the median).
• Draft a clear rental contract, explicitly mentioning the minimum 3-year duration.
• Register this contract on the tax portal (Autoridade Tributária) and the IHRU portal within the set deadlines (generally within 30 days of signing).
• Use Roomlala's messaging and secure payment system to keep a transparent record of all your transactions, thereby facilitating your tax returns.

In conclusion, the end of 2026 marks a historic turning point for real estate in Portugal. Far from the constraints of mass tourism, long-term rental is reinventing itself. Whether you are a seasoned investor or an individual looking to generate income from an unoccupied room, the new legal provisions are designed to enrich you while participating in the resolution of the housing crisis. At Roomlala, we are proud to accompany you in this transition towards a more human, more stable, and fiscally advantageous rental experience.