Key figures — as of 2026-09-05: Rental investment contracts (CIA) and the simplified affordable-rental regime (RSAA) entered into force 1 September 2026 under Decreto-Lei 97/2026 — self-build VAT refunds (17 percentage points, 23%→6%) must be filed within 12 months of the occupancy permit, with the Tax Authority allowed up to 150 days to pay — eligibility caps at €660,982 property value and €2,300/month rent — CIA contracts run up to 25 years but claw back 100% of benefits if terminated within the first 10.
A package that just went live
Portugal's biggest housing tax overhaul in years quietly crossed a threshold this week. Under Decreto-Lei 97/2026, of 20 May, issued under the enabling law Lei 9-A/2026 of 6 March, the regime for Investment Contracts for Letting (CIA) is approved to enter into force on 1 September 2026, to be signed between qualifying investors and the Institute for Housing and Urban Rehabilitation (IHRU, I.P.). The same date brings the Regime Simplificado de Arrendamento Acessível (RSAA) online, replacing the old rental-support scheme entirely — the RSAA replaces the previous Programa de Apoio ao Arrendamento (DL 68/2019), simplifying the regime and widening its scope, and enters into force on 1 September 2026.
For foreigners self-building or renovating a home, and for anyone weighing a long-term rental investment, that date matters because several linked benefits now have hard clocks attached — and one of them has been running since last autumn.
The self-build VAT refund: a 12-month clock, not a discount at checkout
Contrary to some early confusion, builders don't simply charge 6% VAT. When the builder issues invoices, the VAT rate applied continues to be 23%, so in the first instance the full amount must be borne — but later, a refund can be requested for the difference between the standard rate (23%) and the reduced rate (6%), a saving of 17 points on the VAT already paid. This refund is processed by the Tax Authority (AT).
The eligibility window is already open and partly elapsed: the regime took effect from 1 July 2026 and covers building contracts for urban works started between 25 September 2025 and 31 December 2029, provided VAT becomes chargeable between 1 January 2026 and 31 December 2032. That means projects that broke ground right at the start of the window are now approaching their first anniversary — and the filing clock starts not from the build date but from the occupancy permit. After the documentation confirming the start of use of the property is issued (under the Legal Regime for Urbanisation and Building), there's a 12-month deadline to submit the refund request, and this deadline must be strictly observed or the AT may reject the claim for being out of time. Once filed correctly, the Tax Authority has a maximum period of 150 days to process the refund, counted from receipt of the duly completed request.
There's a value cap to watch too: the combined cost of land, works and other expenses cannot exceed €660,982, and the AT has clarified that the calculation must add the land price, demolition costs and the building contract value, excluding VAT — a detail that matters for anyone knocking down an existing house to rebuild.
Rental investment: CIA for institutions, RSAA for everyday landlords
The CIA is aimed squarely at investors and developers, not individual landlords with one flat. To qualify, investments must cumulatively meet two conditions: at least 70% of the construction area allocated to residential letting, and monthly rent on housing lease contracts not exceeding €2,300 (moderate rent). In exchange, the CIA lets investors sign a contract with IHRU for up to 25 years in return for a significant package of tax benefits, conditional on keeping the properties let at rents up to €2,300. Walk away early and the penalties bite hard: investors must repay 100% of benefits used if resolution occurs within the first 10 years, 50% between year 10 and the final 5 years, and 30% in the last 5 years of the term.
For smaller landlords, the RSAA and a parallel IRS cut are more relevant. Rental income tax on moderate-rent contracts drops to 10%, up to a €2,300 limit, applicable to contracts of at least three years' duration and running until 2029. That rate has applied since May 2026; the RSAA layered on top from 1 September goes further for landlords letting well below market value, offering deeper exemptions in exchange for tighter rent caps and the same minimum three-year commitment.
GrowIN's read: what the refund is actually worth
The percentages sound abstract until you put a project cost against them. On a €250,000 self-build — a fairly typical Algarve or Alentejo villa budget among GrowIN's foreign readers — the 17-percentage-point VAT clawback works out to roughly €42,500, assuming the full contract value falls within scope. That's not pocket change, but it's conditional on hitting a filing window that started ticking the moment the local câmara issued the occupancy documentation — miss it, and the AT has shown no appetite for exceptions.
"The paperwork deadline, not the tax rate, is what decides who actually gets their money back," says GrowIN Portugal Editorial.
What to watch next
The AT has yet to publish binding guidance on several edge cases — including renting to close family members under the capital-gains reinvestment rules tied to the same package. The Tax Authority has not yet published binding guidance on all application scenarios for this exemption, and fiscal experts recommend confirming case by case before formalising a reinvestment. Foreign owners mid-build should confirm their occupancy-permit date with their câmara municipal now, and anyone eyeing a CIA or RSAA contract should get formal terms from IHRU or Finanças before assuming eligibility. For the wider tax picture affecting foreign residents, see our tax & NIF hub, and speak to a licensed accountant before filing any refund claim — GrowIN's own services team can point you to vetted professionals if you don't already have one.
These are two of the more consequential — and more procedurally unforgiving — reforms to hit Portugal's housing market this year, and both now hinge on dates that are already in motion.