Government Sets Rent Ceilings for Affordable Housing Scheme
The government published regulations for the Simplified Affordable Rental Scheme (Regime Simplificado de Arrendamento Acessível), establishing maximum rent caps by municipality that allow property owners to qualify for full tax exemptions. Under the rules, landlords renting a studio apartment (T0) can charge up to €785 per month in Lisbon and €652 in Porto without paying taxes on the rental income. The scheme provides exemptions from both personal and corporate income taxes to encourage below-market residential leases.
Update: New Rules Set Nationwide Rent Ceilings and Scrap Effort Limit
Under the newly published ministerial order (portaria), rent ceilings across Portugal range between €224 and €2,066 depending on municipality and property type, with one-bedroom units (T1) in Lisbon capped at €1,000. The updated rules also eliminate the requirement that rents must not exceed a 35% household effort rate (taxa de esforço).
The Simplified Affordable Rental Scheme (Regime Simplificado de Arrendamento Acessível) is a state program that sets maximum rent limits for properties based on location and apartment size. Landlords who agree to charge rents within these government caps receive exemptions on personal income tax (IRS) applied to rental earnings. The initiative aims to expand the supply of long-term housing at rates roughly 20% below open market prices.
