IRS Rendas 2026: Anexo F and the 10% Tax Ceiling

Anexo F is the annex to Portugal's annual IRS return (the Modelo 3 declaration) where Category F income — *rendimentos prediais*, i.e. rents — is declared. If you received residential rent in 2026 as an individual, you file Anexo F with your Modelo 3 the following spring, identifying the property, the lease, the amounts received and the documented expenses you deduct.

It applies to individual landlords; company-owned properties follow corporate tax rules instead. This guide covers landlords who hold property personally — the vast majority of Portugal's small landlords.

The standard rate: 25%. Under Art. 72º CIRS, residential rental income is taxed autonomously at a flat 25% — you pay 25% of the taxable rental result, regardless of your other income. The same 25% applies whether or not you are tax resident in Portugal.

Duration reductions — Lei 56/2023 (Mais Habitação). Where the property is let as the tenant's permanent home, a longer contract can reduce that 25% base:

These bands apply only where the contract was celebrated or last renewed on or after 7 October 2023. They are not automatic: for contracts entered into from 1 January 2024, Article 72(23)'s rent-ceiling test can disapply them. From 1 September 2026, that test points to a replacement table that remains unresolved. Confirm the contract with your accountant before relying on a reduced rate.

The 10% ceiling — Art. 45º-C EBF, added by Art. 9º of Decreto-Lei n.º 97/2026, de 20 de maio. This regime applies where:

There is no minimum contract term, no permanent-home condition, and no AT-communication condition. The verified registry does not yet establish whether the rule reaches leases entered into before 2026, so confirm that point rather than assuming it.

The 10% is a ceiling that yields. Where a more favourable rate validly applies, that lower rate prevails. Because the Article 72 bands have their own date, use, and rent-ceiling gates, do not infer the effective rate from contract duration alone.

The alternative: aggregation (englobamento). Instead of the autonomous rate, you may opt to aggregate rents with your other income and pay your general progressive IRS rates. This tends to benefit landlords whose total income falls in a lower bracket — run the numbers before opting in.

An illustration, not an eligibility result. Rent of €1,500 per month is €18,000 per year. Applying 25% to that gross figure gives €4,500; applying 10% gives €1,800, a difference of €2,700. This arithmetic is useful only after the taxable base and the contract's eligibility have been confirmed. Expenses alter the taxable base, and a valid Article 72 reduction may already produce a rate at or below 10%.

A €1,500 rent is below the €2,300 ceiling, but rent level alone does not establish the final rate. Confirm the residential-use and income-date conditions, whether Article 45-C reaches the contract's date, and any Article 72 gates with your accountant.

Expenses reduce the taxable base. Documented expenses — maintenance and repairs, condominium charges, IMI — can be deducted from rental income before the rate is applied. Keep the invoices: undocumented expenses are not deductible.

Deadlines. Anexo F is filed with the Modelo 3 during the annual IRS filing window (April to June). Declare the amounts actually received in the year — if you updated the rent during 2026 using the INE coefficient (1,0224, per Aviso n.º 23174/2025/2), the annex must reflect the real, updated amounts.