The Lisbon Tenants Association (AIL) expressed concern about the increase in rents and called on the Government and the Assembly of the Republic to improve tax deductions for tenants.
The association considers that “the recent fiscal measures announced by the Government are clearly insufficient given the rent values charged and requested by landlords”.
He criticizes the moderate income proposal, which sets a limit of 2,300 euros, highlighting that this could boost income increases. Although landlords can benefit from IRS deductions and a VAT reduction to 6% on works, tenants only saw the rent deduction limit increased from 600 to 900 euros, which they consider insufficient.
In the context of the discussion of the State Budget for 2026, the association proposes four measures to improve tax deductions for tenants.
The first is to allow the deduction of all housing rents, regardless of the year of the contract or the value of the rent. Secondly, it suggests increasing the current deduction from 15% to a minimum of 20%, in line with rising incomes. The third proposal is to increase the deduction limit to twice the value of the Social Support Index (IAS) that will be defined for 2026. Finally, the association proposes that tenants can deduct expenses for authorized works on properties, just as landlords currently do.
A association believes that these measures will not have a significant impact on the State Budget accounts for 2026 and that greater formalization of lease contracts could even increase tax revenue, helping to accommodate the proposals.