Housing Package 2026

• For tenants, there is a tax relief, highlighted by the increase in the IRS deduction limit to €900 in 2026, aiming to reach €1,000 in 2027.

• For landlords renting up to €2,300/month, there is a significant reduction in the tax burden, with IRS taxation on rental income dropping from 25% to just 10%.

• In construction, there is a temporary VAT reduction to 6% on construction or rehabilitation works of houses for sale at a moderate price (up to €660,982 in 2026) or for rental with moderate rent (up to €2,300/month), for works started between 09/25/2025 and 12/31/2029.

• For those with a variable rate mortgage, the temporary exemption from the early repayment fee ended on December 31, 2025: in 2026, the bank may charge up to 0.5% of the repaid capital (up to 2% during a fixed rate period). There is no fee when the repayment is due to death, unemployment, or professional relocation.

Overall, the measures are positive, but it's important to note:

While tax burdens are eased and incentives for supply are created, the real impact on housing accessibility, especially in denser urban areas, will depend on how quickly these policies translate into the market and clear impacts on final prices. This is particularly relevant for those seeking a mortgage, as the total cost of the house (price, taxes, and fees) remains a decisive factor, and this is where specialized mortgage guidance makes all the difference!

2026 paves the way for a new paradigm in the Portuguese housing ecosystem. But you might be wondering: How will these measures impact me?

CrediSegur helps you answer this question!

See you soon,
Diogo Ferreira