# Portugal's RSAA Gives Landlords 0% Tax From 1 September for Below-Market Rent

> Portugal's new RSAA scheme exempts landlords from IRS/IRC tax if they charge rents 20% below market median, effective 1 September 2026.

- Source: https://www.growinportugal.com/news/landlords-get-full-tax-exemption-under-new-affordable-rental-2026-09-21
- Publisher: GrowIN Portugal (https://www.growinportugal.com)
- Published: 2026-09-21
- Last reviewed: 2026-09-21
- Language: en

> **Key figures — as of 2026-09-21:** RSAA in force since **1 September 2026** — full **0% IRS/IRC** exemption on qualifying rental income — rent cap set at **80% of the INE municipal median rent per m²**, roughly 20% below market — minimum contract term **3 years** for a permanent home (3 months for temporary lets) — exemption has **no expiry date**, unlike the parallel 10% flat-rate regime, which runs only to 31 December 2029.

## A zero-tax deal for landlords willing to undercut the market

Portugal's tax authority now offers landlords a flat **0% rate** on rental income, in exchange for pricing a home below market rent. From 1 September 2026, Portugal introduces the new Simplified Affordable Rental Scheme — Regime Simplificado de Arrendamento Acessível (RSAA), under which qualifying rental income can be exempt from both IRS and IRC. For a country where rents have outpaced wages for years, this is the government's biggest fiscal lever yet to pull landlords back into "affordable" territory voluntarily.

The scheme was created by the housing tax package approved in May, seeking to increase the supply of homes for rent through tax incentives and rules tailored to different types of landlord. It replaces the Rental Support Programme with the Simplified Affordable Rental Scheme, and arrives alongside a separate instrument, the CIA, Investment Contracts for Rental Housing, aimed at developers and investors with larger-scale projects.

## How the exemption actually works

The rent cap is not a flat euro figure — it moves with local market data. The maximum permitted rent depends on the municipality and property characteristics and is based broadly on 80% of the median rental value for the relevant area. In practice that means a landlord in a pricier Lisbon or Porto freguesia can still charge a healthy rent and qualify — provided it sits roughly a fifth below what the INE registers as typical for that neighbourhood.

Contract length matters too: for permanent residences, qualifying contracts generally need to have a minimum term of three years. Shorter, temporary lets have their own threshold. To actually get the exemption, landlords have paperwork to file with two bodies, not just Finanças: the landlord must submit on the IHRU electronic platform, by 15 January of the year following the contract's signing, a copy of the contract and proof of its communication on the Portal das Finanças.

Unlike some other housing incentives introduced this year, this one isn't temporary. The RSAA emerges as an alternative to the autonomous 10% IRS rate applicable to residential rental contracts up to €2,300 monthly in 2026; that rate runs until 31 December 2029, while the RSAA exemption has no expiry date foreseen. That distinction matters for anyone weighing a multi-year commitment: the 10% moderate-rent route is a sunset provision, the RSAA currently isn't.

There's a wrinkle for landlords who mix rental income with other earnings. If the landlord chooses to include property income, the income exempt under the RSAA must mandatorily be included to determine the tax rate applicable to the remaining income. Practically, the exemption removes the tax bill on that specific rent but can still nudge you into a higher bracket on everything else you declare.

## The GrowIN calculation: who actually comes out ahead

Take a landlord letting a Lisbon flat at a typical market rent of €1,500/month — €18,000 a year. Taxed at the standard 28% flat rate on rental income, that's roughly €5,040 in IRS, leaving €12,960 net. Under the RSAA, the same landlord drops the rent by 20% to hit the median-based cap — around €1,200/month, or €14,400 a year — but pays zero tax, pocketing the full €14,400. That's about **€1,440 more in the landlord's pocket annually** despite charging less, while the tenant saves roughly **€300 a month, or €3,600 a year**, on rent. It's a rare case where the tax break and the tenant's relief point in the same direction — one reason the scheme could move the needle for foreigners priced out of Lisbon and Porto.

"For once, a Portuguese tax break rewards charging less rent rather than more — that alignment is what could actually shift landlord behaviour," says GrowIN Portugal Editorial.

## What this means for foreign tenants

Portugal's rental crunch has hit foreign workers, remote employees on D8 visas, and students especially hard, competing for a shrinking pool of listings against Alojamento Local conversions. The RSAA doesn't cap eligibility to Portuguese nationals — a foreign tenant on a standard NRAU lease benefits the same way a local one does, provided the landlord opts in. Whether landlords actually bite depends on how attractive €14,400 tax-free looks against the hassle of registering with IHRU and locking into a three-year term. Early adoption numbers weren't available at the time of writing.

## What to watch next

The Autoridade Tributária hasn't yet issued binding guidance on every edge case — letting to direct family members is one point still under review by tax advisors. Anyone considering the RSAA, whether as landlord or tenant, should confirm current rent-cap tables for their municipality directly via the Portal das Finanças before signing anything, and treat this piece as a snapshot rather than legal advice. For broader context on renting and property costs as a foreigner in Portugal, see our /property/ hub.

Portugal's housing tax package keeps evolving fast, and GrowIN Portugal will update this piece as the Autoridade Tributária and IHRU publish further guidance.

## Sources

- [DLA Piper](https://www.dlapiper.com/en/insights/publications/2026/06/new-incentive-regime-for-housing-and-leasing)
- [Idealista](https://www.idealista.pt/en/news/property-for-rent-in-portugal/2026/09/04/77402-portugal-s-new-affordable-rental-rules-rsaa-and-cia-explained)
- [e-konomista](https://www.e-konomista.pt/isencao-de-impostos-para-senhorios-rendas-baixas/)
- [GoalSeek](https://goalseek.pt/portugal-housing-tax-package-2026-key-tax-changes-for-property-owners-and-investors/)

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© GrowIN Portugal. Cite as: GrowIN Portugal, "Portugal's RSAA Gives Landlords 0% Tax From 1 September for Below-Market Rent", https://www.growinportugal.com/news/landlords-get-full-tax-exemption-under-new-affordable-rental-2026-09-21