The Council of Ministers today approved a measure that reduced by three percentage points, from 28% to 25% the autonomous rate that is levied on rental income.
The measure was announced today by Prime Minister António Costa, at the end of a meeting of the Council of Ministers in which the “More housing” package was approved, with measures aimed at promoting the rental market and boosting housing construction and which includes several tax benefits.
The autonomous rate that is currently levied on rental income has been set at 28% for several years – when the landlord does not choose to include the income – in some situations this rate can be reduced depending on the duration of the contract.
The measure approved today reduces the IRS rate from 28% to 25% and also changes the lower IRS rates that are attributed to longer term contracts.
Thus, the IRS rate applied to contracts with duration between 5 and 10 years drops from 23% to 15% and between 10 and 20 years decreases from 14% to 10%.
For contracts lasting more than 20 years, the tax rate drops from 10% to 5%.