📉 “Moderate Rent” up to €2,300?
Who really benefits?
The Portuguese Government announced that rents up to €2,300/month will be classified as “moderate.” Landlords charging up to this amount will benefit from a sharp reduction in tax on rental income (from 25% down to 10%).
But what does this really mean for the rental market?
📊 The numbers in context
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Median rent for a 2-bedroom apartment (2024):
• Portugal (overall): ~€600
• Lisbon: ~€980 -
Average gross monthly salary in Portugal: €1,640–€1,740
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Tenants in Portugal: ~22–26% of households
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Cost burden: Around 30% of tenants already spend ≥40% of their income on rent
👉 For a €2,300 monthly rent to be “affordable” (≤30% of income), a household would need over €7,600/month in stable income.
⚖️ Impact on each side
Tenants
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The vast majority of Portuguese tenants are nowhere near this level of rent.
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The measure does not address affordability where the pressure is highest (rents €600–€1,200).
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There is no guarantee that the tax break will translate into lower rents.
Landlords
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Clear winners: effective tax on rental income cut from 25% → 10%.
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Could attract vacant or informal properties into the formal rental market.
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Without conditions, this is essentially a direct fiscal bonus for landlords.
🚦 Conclusion
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The €2,300 threshold is so high that almost the entire market qualifies.
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Real impact: landlords gain. Tenants see little relief.
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If the goal were tenant affordability, measures would need to:
• Set regional caps closer to local medians;
• Link tax benefits to household cost burden (≤30–35% of income);
• Limit rent increases to the annual INE index.
📌 In short: the measure makes good headlines, but in practice, tenants get little protection while landlords enjoy a significant tax cut.
Sources: INE, EURSTAT, DADOSGOV.PT, GEE.GOV.PT
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