Since 1 September 2026, the IRS (personal income tax) charged on your rent no longer has a single answer. Decree-Law no. 97/2026 of 20 May created the RSAA (Regime Simplificado de Arrendamento Acessível, the Simplified Affordable Renting Regime) — a regime with full exemption from IRS — which now coexists with the reduced 10% rate in force since January, the general regime of 25% and the 28% for non-residential leases.
This guide explains the four rates, which one applies to your lease, and includes a simulator to estimate the amount. At the end, you will find the concrete steps to secure the lowest rate you are entitled to.
The essentials in 30 seconds
- Four IRS rates on rent coexist in 2026: 0% (RSAA), 10% (moderate rent, up to €2,300/month), 25% (general regime) and 28% (non-residential).
- The RSAA (full exemption) came into force on 1 September 2026 and replaces the former Affordable Rent Programme (Programa de Arrendamento Acessível).
- The 10% rate has been in force since 1 January 2026 — the two regimes are alternatives, they do not add up.
- These rates apply to rent before deductible expenses (works, service charges, insurance, IMI), which reduce the tax actually paid.
The four IRS rates on rent in 2026
The rate that applies depends on the type of property and the rent charged — not on your personal situation as a landlord.
| Lease situation | IRS rate | Legal basis |
|---|---|---|
| Non-residential lease (shops, industry, services) | 28% | General regime of art. 72 of the IRS Code (CIRS) |
| Residential — general regime | 25% | Reference rate with no special regime |
| Residential — moderate rent, up to €2,300/month | 10% | Decree-Law no. 97/2026 (art. 45-C of the Tax Benefits Statute), in force from 1 January 2026 until 31 December 2029 |
| Lease under the RSAA (Affordable Renting) | Exemption — 0% | Decree-Law no. 97/2026, in force from 1 September 2026 |
Two notes that change how you read the table. First: the 10% rate applies to new and existing leases — but only to rent received after the regime came into force. Second: the RSAA and the 10% rate are alternative regimes, not cumulative — below we explain how to choose between them.
Simulate the IRS you will pay
Enter the monthly rent and the lease situation. The calculation is done on your computer — nothing is sent.
Landlord IRS simulator
Estimate of the four rates in force since 1 September 2026 (Decree-Law no. 97/2026). It does not replace your IRS return.
Estimated IRS (year)€1,020
Estimated net rent (year)€9,180
Register your lease with the AT automatically
Calculated locally: nothing is sent. Estimate based on gross rent — it does not include deductible expenses (works, service charges, insurance, IMI), which reduce the amount payable. For information only, not tax advice.
How to choose between the RSAA and the 10% rate
The two regimes are alternatives: they do not add up. The choice depends on the rent, the type of lease and eligibility:
- 10% rate: residential with rent up to €2,300/month and a lease reported to the AT. Above that amount there is no access to the reduced rate.
- RSAA (0%): full IRS exemption, but only for leases that meet the regime’s conditions. Before opting, check the rent limits in the ministerial order for the property’s typology and your eligibility with the IHRU.
- General regime (25%) and non-residential (28%): apply when none of the previous regimes is possible, and are the reference rates to compare against.
Steps to secure the lowest rate you are entitled to
- Confirm that the lease is reported to the AT (Modelo 2) — without this, the reduced rate is at risk. See how to register your lease with the Finanças;
- Check the type of lease (permanent residence or non-residential) and whether the rent fits within the limits of each regime;
- If you are considering the RSAA, validate the eligibility and rent limits before changing the lease;
- Keep your electronic rent receipts and proof of expenses — they are the basis of your IRS;
- Declare the rent under Category F and reduce the tax with the deductible expenses (Anexo F).
Frequently asked questions
How much IRS does a landlord pay on rent in 2026?
It depends on the lease: 0% under the RSAA (full exemption, since 1 September 2026), 10% on moderate rent up to €2,300/month, 25% under the general regime for housing and 28% on non-residential leases. These rates apply to rent before deductible expenses.
Can the RSAA and the 10% rate be combined?
No. They are alternative regimes: one or the other applies to the same lease.
Does the 10% rate apply to existing leases?
Yes, it applies to new and existing leases, but only to rent received after the regime came into force (1 January 2026), and as long as the lease is reported to the AT.
What if the rent is above €2,300 a month?
Above €2,300/month there is no access to the reduced 10% rate and the general 25% regime applies, unless the lease falls under the RSAA, whose eligibility must be confirmed.
