Good news for long term rentals

Changes to income tax on property rentals.

According to an article by Essential Business, new tax legislation regarding the rental of properties in Portugal has recently been passed in parliament. This new law will reduce income tax rates for single people with property to rent, creating new tax breaks for those wanting to build housing to rent out at rents that are affordable to the general public.

Although not yet clearly defined as to what can be charged, it is thought that the level of income tax will reduce from 28% to 26% for contracts over 2 years. There are also further substantial incentives for contracts of longer terms as the government drives to provide tax breaks to landlords. Some of these may be as low as 10% for contracts offered over 20 years. In addition to these breaks, new incentives for housing construction are also in place for housing construction programs with affordable rents, these incentives will help by reducing VAT payments to landlords.

Good news for those wanting to rent invest and rent properties long term in Portugal.