1. Rental income from lease contracts for permanent residence is exempt from IRS and IRC, provided that all of the following conditions are met:
1 - Ficam isentos de tributação em IRS e IRC os rendimentos prediais decorrentes de contratos de arrendamento para habitação permanente, desde que verificadas, cumulativamente, as seguintes condições:
a) The income results from the transfer to leasing, for permanent residence, of property used for operating local accommodation (alojamento local) establishments;
a) Os rendimentos resultem da transferência para arrendamento, para habitação permanente, de imóveis afetos à exploração de estabelecimentos de alojamento local;
b) The local accommodation establishment was registered and used for that purpose by 31 December 2022;
b) O estabelecimento de alojamento local tenha sido registado e estivesse afeto a esse fim até 31 de dezembro de 2022;
c) The lease contract is concluded and registered on the Portal das Finanças (the Tax Authority’s online portal) by 31 December 2024.
c) A celebração do contrato de arrendamento e respetiva inscrição no Portal das Finanças ocorra até 31 de dezembro de 2024.
2. The exemption provided for in the preceding paragraph applies to rental income obtained up to 31 December 2029.
2 - A isenção prevista no número anterior é aplicável aos rendimentos prediais obtidos até 31 de dezembro de 2029.
The IRS/IRC exemption for rental income from permanent-residence leases, its three cumulative conditions (registration and use as local accommodation by 31 December 2022, lease concluded and registered by 31 December 2024) and the 31 December 2029 end date are retained.
We check eligibility for IFICI, the Madeira regime, the start-up and capitalisation incentives and the property benefits, prepare the registrations and claims, and model what the benefit is worth, in English. A written answer and a fixed quote within one working day.
Unofficial English translation prepared by BCA Portugal for reference. Only the Portuguese text published in the Diário da República has legal force. Editorial notes are ours and are not part of the statute.