Adjustments to the Mais Habitação 2026 programme: The new benefits of long-term renting 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 certainly been following the heated debates surrounding the first phase of reforms with great interest. Now, in the autumn of 2026, the legislative landscape is clearing and offering unprecedented opportunities. At Roomlala, we support thousands of hosts and tenants on a daily basis, and we have analysed these recent developments in detail for you. The State's objective is clear: to provide tax incentives for hosts to move away from mass tourism, which has become too restrictive, in favour of long-term rentals in Portugal.

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

See also: 2027 Portugal State Budget: New tax incentives for renting out your rooms on Roomlala, IRS exemption and reduction for property rentals in Portugal: New features for 2026 and Quebec's Bill 31 in 2026: Impacts on lease transfers and alternative solutions

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

For a long time, the term Mais Habitação resonated as a source of concern for many hosts. Indeed, the initial versions of this programme imposed rules perceived as too restrictive, particularly a strict freeze on rents for 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, from a legal perspective, 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 understood that it cannot solve the housing crisis without the active cooperation of private hosts. Consequently, the strict rent freeze has been lifted to restore confidence among landlords.

The main focus of Construir Portugal is the tax carrot rather than the stick. The goal is to massively boost long-term rentals in Portugal by making this option financially more attractive than short-term tourist rentals (like Alojamento Local), which are also facing increasingly heavy local restrictions. For you, as a host, this is the ideal time to rethink your rental strategy and secure your income over 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 for shared housing or as 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 host taxation in Portugal: Drastically reduced tax rates

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

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

To benefit from this reduced rate, several simple conditions must be met. Firstly, the monthly rent must be considered "moderate", meaning it is capped at 2,300 euros per month. Secondly, 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 to 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 in 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 rented two rooms to students for a total of €900 per month and paid 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, mechanically increasing her net profitability without having had to increase the rent for her tenants.

The Simplified Affordable Rental Scheme (RSAA): Total 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 answer to the shortage of housing for the middle class and young professionals.

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

Point of vigilance: Please note, this exemption is not automatic. At Roomlala, we want to inform you precisely about the legal procedures. To benefit from the RSAA, your rental contract must be registered on the official IHRU (Housing and Urban Rehabilitation Institute) portal. Additionally, the exact rent caps that determine the local median depend on local ordinances (the portarias), the publication of which is staggered over 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 1-bedroom flat in Lisbon. The median rent in his neighbourhood is estimated at €1,200. If he decides to rent his property for €950 (i.e., below the 80% median mark), he will pay absolutely no tax on this income. Although the gross rent is slightly lower than what he could hope for on the open market, the net rent (after taxes) that lands in his pocket is significantly higher. It is a formidably effective tax strategy.

Tenants and hosts: A system finally 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 tenants, who are facing cost-of-living inflation. To help them manage rents and to ensure demand is solvent, the government has increased the tax deductions they can benefit from.

As a result, tenants will see their tax deduction ceiling on rents (deductible from their own IRS) increase significantly. This ceiling rises to 900 euros for the 2026 tax year and will reach 1,000 euros from 2027 onwards. This measure restores purchasing power to tenants.

For you, as hosts, this is excellent indirect news. A tenant who benefits from high tax deductions is a financially more stable tenant, which drastically reduces the risk of non-payment. At Roomlala, we foster this relationship of trust: by offering homes or rooms with proper and formal contracts, you enable your tenants to benefit from this support, 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 of rent increases during changes of tenants or lease renewals. This mechanism had paralysed many hosts, who were frightened at the prospect of seeing the profitability of their property frozen for decades despite inflation.

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

This recovered 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 establishing themselves as the most agile and protective solutions in 2026.

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

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

If you have an empty room, now is the time to take the plunge. Renting a room in Lisbon, Porto, Coimbra, or Faro has become a real fiscal breeze. By using Roomlala, you get access to a community of verified tenants (students, seconded workers, expatriates). 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 Simplified Affordable Rental Scheme (RSAA) with 0% tax, we recommend you:

• Check the portarias of your municipality to find the exact rent cap (80% of the median).
• Draft a clear rental contract, explicitly mentioning the minimum duration of 3 years.
• Register this contract on the tax portal (Autoridade Tributária) and on the IHRU portal within the prescribed time limits (generally within 30 days of signing).
• Use the Roomlala messaging and secure payment system to keep a transparent record of all your transactions, thus facilitating your tax declarations.

In conclusion, the end of 2026 marks a historic turning point for property 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 monetise an unoccupied room, the new legal provisions are designed to enrich you while participating in resolving the housing crisis. At Roomlala, we are proud to support you in this transition towards a more human, more stable, and fiscally very advantageous rental market.