Non-resident property owners in Portugal who have transferred properties from local lodging (AL) to permanent residential rental are exempt from IRS or IRC on rental income until 2029, clarified the Tax Authority (AT).
This tax benefit, introduced by the Mais Habitação Law, applies to properties registered as AL until December 31, 2022, provided the rental contract is signed and registered by December 31, 2024.
According to the AT, the exemption depends solely on the property’s use for residential rental, regardless of the owner’s residency status.
Tax Department
Sofia Quental | Inês Grácio | Catarina Amaral
