IRS Rendas 2026: Anexo F, Rental Income and the 10% Rate

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 cuts that 25% base by a number of percentage points:

The reductions come off the same 25% base — they do not compound. They apply only where the contract was celebrated or last renewed on or after 7 October 2023 (Art. 50º nº 7 of Lei 56/2023); an older contract that has not renewed since remains on the earlier regime.

The 10% rate — Art. 45º-C EBF, added by Art. 9º of Decreto-Lei n.º 97/2026, de 20 de maio. Approved under the authorization of Lei n.º 9-A/2026, de 6 de março, this regime taxes rental income at 10% when:

That is the complete list. There is no minimum contract term, no permanent-home condition and no AT-communication condition — a one-year lease at €900 a month qualifies exactly as a ten-year one does. The regime covers both new and in-progress contracts, with effects from 1 January 2026.

The 10% is a ceiling that yields. It applies *"salvo quando seja aplicável uma taxa mais favorável"* — except where a more favourable rate applies. Your effective rate is therefore the lower of 10% and your Art. 72º band: a qualifying 12-year permanent-home lease is already at 10%, and a 20-year one stays at 5%.

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.

A worked example. Rent of €1,500 per month is €18,000 per year.

€1,500 sits comfortably under the €2,300 ceiling, so a lease let exclusively for residential purposes at this rent qualifies whatever its term. But that €2,700 assumes you are otherwise paying the full 25%. If an Art. 72º duration reduction already applies, the 10% rate is worth less — or nothing at all: on a 5-to-10-year permanent-home lease you are already at 15% (€2,700 of tax), so the saving is €900 a year; on a 10-to-20-year lease you are already at 10%, so it is €0; and on a 20-year lease you stay at 5% and pay €900, because the 10% rate can only ever lower a rate, never raise one.

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.

CompliantLease keeps the paper trail Anexo F depends on: every rent you record in the ledger is tracked, and a courtesy receipt PDF is generated and sent automatically — so received amounts, receipts and the contract always tell the same story. Tax-season summaries that assemble the year's figures for your accountant are planned for launch. The official receipts and the tax filing itself remain on the Portal das Finanças.