Does the 10% regime apply to tourist furnished lettings?

No: it targets moderate-rent housing contracts (category F, capped at 2.5× the minimum wage). Alojamento local sits in a different framework, covered in our dedicated text.

Can a non-resident combine the 10% rate and the IMT refund?

Yes, that is the intended interplay: the same moderate-rent contract (36 months within the first five years) carries the 10% income regime and opens the IMT differential refund.

Portugal's moderate-rent regime: 10% autonomous tax (art. 45.º-C EBF), 2.5× minimum-wage cap, until end-2029

Moderate-rent letting in Portugal: the 10% tax few investors examine

Between saturated short lets and full IRS rates runs a third road: fiscally encouraged moderate rent. Provided you read the cap, the duration — and the expiry date.

31 August 20263 min readLa rédaction — Wealth Management · Global Real AssetsPortugalFacts checked on 31 August 2026Subject to regulatory updates

Key points

Article 45.º-C of the Tax Benefits Statute (EBF), part of the 2026 measures, taxes rental income (category F) from moderate-rent housing contracts at an autonomous 10% — applicable until 31 December 2029.
Rent is "moderate" under a cap of 2.5 times the guaranteed monthly minimum wage — for 2026, rent in the region of EUR 2,300 per month.
For category B income under organised accounting, taxation is limited to 50% of the income received.
The regime interlocks with non-resident IMT: committing the property to moderate letting (36 months within the first five years) is one of the two refund routes for the 7.5% surcharge — the two texts are read together.
The benefit has an end date; an investment plan carrying it beyond 2029 without a review clause rests on an assumption, not a statute.

A calibrated incentive, not a general regime

The Portuguese legislator did not lighten rental taxation: it bought a behaviour — capped, long, declared rents. The 10% rewards allocation, not ownership. Outside the template (rent above cap, tourist furnished, short lease), ordinary law resumes, full rates included.

The investor's arithmetic

At a cap of roughly EUR 2,300 monthly, the regime bounds gross income but secures the net: a final 10% against materially higher general-regime category F rates. On a mid-segment asset — precisely where market rent flirts with the cap — the net gap can invert the comparison with a dearer but heavier-taxed letting. It is a case-by-case computation; it is rarely made.

The interplay with the 7.5% IMT

For the non-resident hit by the flat acquisition rate, moderate letting is more than an income regime: it is the restitution route for the IMT surcharge (36 months of letting, continuous or not, within the first five years). The same contract then produces two effects — income taxed at 10%, IMT differential recovered. Few regimes offer that double reading; this one expires at end-2029.

General information, verified at publication date. Tax law evolves: every transaction calls for licensed advice.

Journal articles are published for general, educational purposes. They constitute neither legal, tax or financial advice, nor an offer. Every situation calls for the analysis of licensed advisers.