Landlords: the 10% IRS rate also applies when a company is the tenant
The special IRS rate on rental income for housing at moderate rents is 10% instead of 25%, under Decree-Law 97/2026 of 20 May (article 45-C of the Tax Benefits Statute), until 31 December 2029. The rent may not exceed €2,300 a month, which is 2.5 times the 2026 minimum wage of €920. The Tax Authority has now confirmed in binding information PIV_30751 that the contract can be signed with a company, as long as the home is used exclusively as housing by one individual named in the contract; subletting and business use are not allowed.
Why it matters for your move
If you let a flat to a company for an employee or manager, you can still pay 10% on the rent — provided the person living there is named in the contract and the rent stays within €2,300.
This is Re-locant.com’s own brief, written to explain what the update means for people moving to or living in Portugal. For the full original report, see the source below.