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

Faced with a housing crisis that has profoundly reshaped the Portuguese real estate landscape in recent years, the Portuguese government has had to go back to the drawing board. If you are a host, you have most certainly followed the heated debates around the first wave of reforms with great attention. 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 on a daily basis, and we have analyzed 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 favor of long-term rentals in Portugal.

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

Read also: 2027 Portugal State Budget: New tax incentives for renting out your rooms on Roomlala, IRS tax exemption and reduction for rentals in Portugal: What's new in 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 resonated as a source of concern for many hosts. Indeed, the first drafts of this program 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, legally speaking, the term Mais Habitação 2026 has become obsolete. It has been officially replaced by the Construir Portugal program. 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. Thus, the strict rent freeze has been removed to restore confidence among landlords.

The main focus of Construir Portugal is the carrot of tax incentives rather than the stick. The goal is to massively relaunch long-term rentals 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, the host, this is the perfect 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 as 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 of 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 rental income drops 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. Next, the signed lease must have a minimum duration of 3 years. This measure clearly aims to stabilize 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 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, the owner of 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 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 September 1, 2026. This scheme is the direct response 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 entitled to it, the host must offer a rent at least 20% lower than the median value of the local market (i.e., a rent lower than 80% of the local median).

Point of attention: Please note, 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 imperatively be registered on the official IHRU portal (Institute for Housing and Urban Rehabilitation). Furthermore, the exact rent caps that determine the local median depend on local ordinances (the portarias), the publication of which is spread 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 T2 in Lisbon. The median rent in his neighborhood is estimated at €1,200. If he decides to rent his property for €950 (i.e., below the 80% mark of the median), he will pay absolutely no tax on this income. Although the gross rent is slightly lower than what he might hope for on the free market, the net rent (after taxes) that lands in his pocket is significantly higher. It is a formidably effective tax strategy.

Tenants and hosts: Finally a win-win system

Increased tax benefits for tenants

For a rental market to be healthy, both supply and demand must find their place. The Construir Portugal program has not forgotten tenants, who are facing inflation in the cost of living. To help them manage rents and to make demand solvent, the government has increased the tax deductions they can benefit from.

Thus, tenants 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 in 2027. This measure restores purchasing power to tenants.

For you, 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 unpaid rent. At Roomlala, we promote this relationship of trust: by offering properties or rooms with proper contracts in good and due form, you allow your tenants to benefit from these aids, 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 tenant changes or lease renewals. This mechanism had paralyzed many hosts, terrified at the idea of seeing the profitability of their property frozen for decades despite inflation.

The government has heard these fears. The removal 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 freedom, conditioned by tax incentives rather than punitive obligations.

This newfound flexibility allows hosts to adapt to economic realities while being rewarded if they choose price moderation. It is in this climate of renewed confidence that room rentals and shared housing stand out as the most agile and protective solutions in 2026.

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

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

If you have an empty room, now is the time to take the leap. Renting a room in Lisbon, Porto, Coimbra, or Faro has become a real tax breeze. By going through Roomlala, you have access to a community of verified tenants (students, seconded workers, expats). We advise you to prioritize medium to long-term leases (more than 3 years) to immediately unlock the reduced 10% IRS rate.

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

• Check the portarias of your municipality to know 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 deadlines (generally within 30 days of signing).
• Use the messaging and secure payment system of Roomlala 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 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 monetize 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 very advantageous rental experience.