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Rental Income Tax Calculator — the 2026 10% Rate

Portugal cut the IRS rate on residential rents from 25% to 10% for "moderate rents" (Decreto-Lei n.º 97/2026, under the 2026 State Budget package). If your rent is at most €2,300/month and the contract runs 3+ years, see exactly what you save — including on contracts that already exist.

The monthly rent in the contract (the "renda moderada" ceiling is €2,300).

The 10% rate requires a duration of at least 3 years.

Enter a valid monthly rent and contract duration to see your result.

How it works

  1. 1Enter the monthly rent and the contract duration.
  2. 2We compare the IRS due at the standard 25% autonomous rate with the reduced 10% rate for moderate rents.
  3. 3You see the annual saving and the total through 2029 — plus exactly which legal conditions apply.

Frequently Asked Questions

What are the conditions for the 10% IRS rate on rents?

Four conditions (Decreto-Lei n.º 97/2026): the monthly rent cannot exceed €2,300 ("renda moderada", 2.5× the 2026 minimum wage); the contract must run at least 3 years; the property must be the tenant's permanent home; and the contract must be registered with the tax authority (Modelo 2) with rental income correctly declared (Anexo F). The regime covers income received through the end of 2029.

Does the 10% rate apply to contracts that already exist?

Yes. The reduced rate applies to rents received from 1 January 2026 onwards, even if the contract was signed in an earlier year — as long as it meets all the conditions in the tax period in question.

What happens if my rent is above €2,300 per month?

The 10% rate does not apply. The income falls under the standard 25% autonomous rate (Art. 72.º CIRS), or you can opt for aggregation at progressive rates. Contracts of 5+ years may still benefit from the Mais Habitação duration-based reduced rates (Lei n.º 56/2023).

Until when is the 10% rate in force?

It covers rental income received until the end of 2029 (Decreto-Lei n.º 97/2026). Future State Budgets may extend or change the regime — this calculator only ever uses the published law.

Legal sources

Every figure in this calculator is taken from the published law — never estimated.

Decreto-Lei n.º 97/2026, de 20 de maio

Reduces the IRS/IRC rate on residential rents up to €2,300/month to 10%, for 3+ year contracts, covering income through the end of 2029. Applies to new and existing contracts.

Lei n.º 9-A/2026, de 6 de março

The parliamentary authorization for the 2026 housing tax package implemented by DL 97/2026.

Art. 72.º CIRS

The standard 25% autonomous IRS rate on residential rental income (Category F) used as the comparison baseline.

Lei n.º 56/2023 (Mais Habitação)

Grants duration-based reduced rates for long contracts — the reason the saving shown for 5+ year contracts is measured against the standard 25% rate.

Legal facts verified: 2026-06-10

This tool is for informational purposes only and is not tax or legal advice. Figures are a simulation based on the inputs you provide. For advice on your specific situation, consult a certified accountant or a Portuguese lawyer.

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Related guides

Tax Obligations for Landlords in Portugal: IRS, IRC, and Rental Income RulesLease Registration at Finanças: How to Register Your Rental Contract in PortugalRent Receipt Obligations in Portugal: Rules for Landlords and Tenants

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