Regulations for Investment Contracts for Leasing

In brief

On 30 September, the Government published, through Ordinance No. 447-A/2026/1, the regulations for Investment Contracts for Leasing ("CIA"), introduced by Decree-Law No. 97/2026, with the aim of encouraging the supply of residential housing for rent. 

In detail

The new regime establishes a framework of tax and legislative stability for investments in the acquisition, construction and rehabilitation of real estate assets intended for residential letting or sub-letting arrangements, for a period of up to 25 years.

In this context, the regulations set out the procedures and requirements for the submission and approval of CIAs, the eligibility criteria applicable to investors, and the obligations with which they must comply. The key aspects are as follows:

Investment requirements

• At least 70% of the total construction area of the buildings must be allocated to residential leasing/ subleasing purposes;
• The rents charged must comply with certain maximum rent thresholds (currently € 2,300 per month), except in the case of properties intended for affordable rental housing, which are subject to a special regime.

Eligible Investors

• Individuals, legal entities or other entities provided they meet the applicable legal requirements, including, in particular, having adequate technical and management capacity and having their tax and social security affairs in order.
• For the purposes of demonstrating technical and management capacity, applicants must have at least three years of proven experience in real estate investment and/or development, property management or residential lease management. 

Procedural Aspects

• Applications must be submitted electronically to the Institute for Housing and Urban Rehabilitation, including detailed information on the project, the investment structure, the properties concerned and the term of the contract (ranging from 10 to 25 years);
• Investors will be subject to ongoing reporting and monitoring obligations, including the submission of an annual implementation report by the end January each year.

The Ordinance enters into force on 1 October 2026.

^{© 2026 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.}