The Portuguese rental market has entered a new era. While 2024 was defined by legislative uncertainty, 2025 stands as the year of direct fiscal incentives. The objective is clear: to increase housing supply through a drastic reduction in the tax burden for those who invest strategically.
At TeamQASA, we believe that profitability depends not just on gross rent, but on fiscal optimization. Let’s analyze the two major pillars that can redefine your portfolio’s performance this year.
1. Moderate Rent: IRS Tax Drops to 10%
The headline news for 2025 is the new Moderate Rent concept. Unlike previous programs, this is simplified and covers the majority of properties in the national market.
What has changed? Previously, the flat IRS rate on rents was generally 25%. Under the new law, the Government created an "eligibility ceiling" fixed at €2,300 per month.
The Measure: All rental contracts (new or existing) with rents up to €2,300 benefit from an IRS rate of just 10%.
No Municipal Limits: A victory for transparency. Unlike past attempts, this €2,300 threshold applies across the entire country, eliminating the complexity of municipality-specific tables.
Validity: This benefit is legally guaranteed until the end of 2029.
The Impact on the Numbers: For a property rented at €1,500/month, a landlord used to pay €4,500 in annual IRS. With the new 10% rate, they will pay only €1,800. That is €2,700 in extra net profit every year, without needing to raise the rent for the tenant.
2. Accessible Rental (RSAA): Total IRS Exemption (0%)
For those seeking to maximize net profitability by sacrificing a small margin on gross rent, the Simplified Accessible Rental Scheme (RSAA) is the ultimate tool.
The "20%" Requirement: To access the total IRS exemption (0% rate), the owner must set a rent that is at least 20% below the market median defined by the INE (National Statistics Institute) for that specific municipality and property type.
Strategic Advantages:
Zero Tax: There is no taxation whatsoever on rental income.
Payment Security: These contracts attract tenants with healthier debt-to-income ratios, reducing the risk of default.
Market Priority: Demand for these properties is massive, reducing vacancy time (the period the property sits empty) to zero.
3. Capital Gains Exemption: The Incentive to Reinvest
This is perhaps the most underrated measure of 2025. The Government introduced an IRS exemption on capital gains resulting from the sale of residential properties (even those that are not the owner’s primary residence).
The Condition: The sale proceeds must be reinvested in the purchase of other properties intended for the Moderate Rent market (up to €2,300).
This measure allows investors to rotate their portfolios—selling less profitable assets to buy new ones—without losing 28% of their profit to the State, provided the capital stays within the rental market.
4. Impact for Companies (IRC)
TeamQASA frequently manages portfolios held by companies. In 2025, the incentive extends to Corporate Income Tax (IRC):
Rental income from housing contracts within the Moderate Rent limits will be considered at only 50% of their taxable base. In practice, the tax burden on companies investing in residential rentals is cut in half.
Summary: What is the best strategy for your property?
| Feature | Open Market (>€2,300) | Moderate Rent | Accessible Rental (RSAA) |
| IRS Rate | 25% | 10% | 0% (Exempt) |
| Rent Limit | No limit | Up to €2,300 | 20% below INE median |
| Ideal for... | Luxury Properties | 80% of the current market | Maximizing net profitability |
The TeamQASA Vision
In 2025, passive property management is a financial mistake. Between rates of 25%, 10%, or 0%, the difference at the end of the year can represent tens of thousands of euros.
If you have a vacant property, a contract about to end, or intend to reinvest your capital, do not make decisions based on hearsay.
The market does not forgive inertia. A fiscally mispositioned property is a silent capital loss that can cost thousands of euros per year.