Portugal's Decree-Law No. 97/2026 Introduces Major Housing Tax Reform on May 20

Portugal Enacts Major Housing Tax Reform

On May 20, Portugal introduced Decree-Law No. 97/2026, a key component of the 'Construir Portugal' package. This legislation represents the most substantial tax reform in the housing sector in recent years, with the primary objective of re-calibrating tax incentives to bring more moderately priced housing onto the market.

These changes will affect everyone, including Portuguese citizens and expatriates. If you are considering purchasing or long-term renting a property in Portugal, the new regulations will influence ownership costs and rental conditions. It is crucial not to rely on previous calculations, as the impact can vary significantly depending on the specific property and your individual circumstances.

Before finalizing any property purchase or long-term rental agreement, it is highly recommended to consult Finanças (the Portuguese tax authority) or a qualified real estate agent. They can provide clarity on how these new tax rules will specifically affect your chosen property and financial situation, as there is no universal answer.

• Decree-Law No. 97/2026, issued on May 20, marks the first major housing tax reform in Portugal in years, aiming to increase affordable housing availability.
• The new tax regulations will influence property ownership costs and rental terms, meaning previous financial calculations may no longer be accurate.
• Before committing to a property purchase or long-term rental, it is advisable to consult Finanças (the Portuguese tax authority) or a real estate agent to understand the specific impact of these reforms on your situation.