What the affordable rental scheme is
The RSAA was created by Decree-Law 97/2026 of 20 May (annex III). The rent from leases that meet the scheme's rules is exempt from IRS and IRC (personal and corporate income tax). The main condition is the rent: the monthly rent must be equal to or below the maximum for its size, in the municipality of the property.
Those limits were set by Portaria 454/2026/1 of 13 October. They start from 80% of the median rent INE publishes for each municipality and take into account the maximum floor areas by size of controlled-cost housing. The Portaria came into force on 14 October 2026, with effect from 1 September. In between, the ceilings of Portaria 176/2019 applied.
Which leases are covered
The RSAA covers leases and subleases of housing (self-contained units and parts of a building with independent use). There are two kinds of lease:
| Permanent residence | Temporary residence | |
|---|---|---|
| Minimum term | 3 years | 3 months, renewable |
| Tenant | No restriction | Tax resident in another municipality |
| Type of lease | Housing | Special transitory purpose (art. 1095(3) of the Civil Code) |
The leases follow the Civil Code and the NRAU. Municipalities can set up municipal affordable rental programmes and public bodies can rent under this scheme: both follow the same ceilings and minimum terms.
How to get the IRS exemption
- Set a rent within the ceiling: the one for the municipality, the size and the uplifts that apply to the property.
- Report the lease to the Tax Authority through the Portal das Finanças, as for any lease.
- Submit the lease to the IHRU on the platform of the Housing and Urban Rehabilitation Institute, with the proof of the report to the Tax Authority, by 15 January of the year after the lease was signed.
- The IHRU reports the lease to the Tax Authority by the end of February. The exemption applies from the date of the lease and carries over to renewals and to a new owner while the lease stays in force.
If the rent or the term stops meeting the rules, the exemption is lost from the moment of the breach and the difference in tax must be paid, with compensatory interest (article 7). If you opt to aggregate property income, exempt rent must be included in the aggregation, only to work out the rate on your other income. The maths is in the rental income tax calculator.
Uplifts: parking and energy class
The ceilings in the table rise 10% if the lease includes private parking and 10% if the property has a valid energy certificate of class A or better on the date of the lease. The two uplifts add up: with both, the ceiling rises 20%.
| Example: T2 in Lisbon | Monthly ceiling |
|---|---|
| No uplift | €1,309 |
| With private parking (+10%) | €1,439.90 |
| With energy class A or better (+10%) | €1,439.90 |
| With parking and class A (+20%) | €1,570.80 |
Above T5
For homes with more than five bedrooms, the ceiling is the T5's plus a fixed amount for each bedroom beyond the fifth: €50, €75, €100 or €150 per bedroom, depending on the municipality (€150 in Lisbon). A T6 in Lisbon has a ceiling of €2,216.
Renting a single room
The decree-law defines "part of a dwelling" in connection with temporary-residence leases, with cumulative requirements: separate access to the front door, a full bathroom and the kitchen, and a room with a window to the outside (or a balcony or sunroom). For that case, the Portaria sets the ceiling as the dwelling's ceiling multiplied by Auq ÷ Aut: the usable area of the room rented (plus 25% if it has a private bathroom) divided by the usable area of all the bedrooms of the home. The uplifts apply afterwards. The simulator does this sum. For a room outside this case, check with the IHRU before counting on the exemption.
What the ceiling does not include
The rent limit does not include the charges and expenses of article 1078 of the Civil Code. The ceilings are reviewed periodically, with effect from 1 January, and in years without a review they rise by the update coefficient of article 24 of the NRAU.
For information only, not legal or tax advice. Sources: Portaria 454/2026/1 of 13 October and Decree-Law 97/2026 of 20 May (annex III), in the Diário da República. Last reviewed: 22 October 2026.