12 January 2026

Parliament has given general approval to a new package of fiscal and legislative measures aimed at boosting Portugal’s housing market, with the objective of encouraging construction, promoting moderately priced rental housing and increasing overall housing supply.

The approved set of measures grants the Government authorisation to introduce significant changes to several legal frameworks, including the VAT Code, the Personal Income Tax Code, the Tax Benefits Statute and the Property Transfer Tax Code, creating a more favourable environment for investment and real estate development.

Among the most anticipated initiatives is the reduction of the VAT rate from 23% to 6% on the construction of housing intended for sale or rental within certain value thresholds. This measure may help reduce construction costs and, consequently, lead to more affordable prices in the market. In parallel, additional tax changes are planned to encourage property owners to place their homes on the rental market.

The package also includes changes to urban planning, licensing and urban rehabilitation regulations, aiming to simplify procedures, reduce response times and increase predictability for real estate projects — factors considered essential to accelerate the delivery of new developments.

The real estate sector believes these measures may represent a decisive step towards strengthening market confidence, stimulating sustainable investment and responding more effectively to the housing needs of families.
IMMOPO Real Estate closely monitors developments in the legal and fiscal framework of the real estate sector, analysing the impact of these measures on the market and on opportunities for clients and investors. In a changing environment, IMMOPO reaffirms its commitment to providing up-to-date, accurate and strategic information, supporting informed decision-making in an ever-evolving market.
IMMOPO Real Estate, Mercado Imobiliário