LEGISLATIVE ALERT: What Changes in the Real Estate Sector in 2026?

2026-02-06

The beginning of 2026 marks the entry into force of important tax and contractual changes with a direct impact on the Portuguese real estate market.
Whether you are planning to buy, sell, or rent a property, it is essential to be aware of the new rules already in effect.

This guide summarizes the three key measures that require your immediate attention.

1. Youth IMT: Updated Exemption Thresholds

The 2026 State Budget strengthened support for the acquisition of primary and permanent housing by young buyers. The Youth IMT regime, applicable to buyers up to the age of 35, has had its exemption thresholds updated:

The maximum value for full exemption from IMT and Stamp Duty on the first property acquisition has increased to €330,539 [1]. For properties valued between €330,539 and €660,982, a partial exemption continues to apply, with tax payable only on the amount exceeding the first threshold.

This update represents an increase of €6,481 compared to 2025, making home ownership more accessible for young buyers.

2. New IMT Tables for 2026

For buyers who do not benefit from exemption regimes, the brackets of the Municipal Property Transfer Tax (IMT) have been updated by 2%, in accordance with Circular Letter No. 40129 [2].
The general exemption for primary and permanent residence now applies to properties valued up to €106,346.

It is essential to recalculate transaction costs, as these new tables affect the final amount of tax payable when acquiring a property.

3. Rent Updates in 2026

Regarding the rental market, the National Statistics Institute (INE) has set the annual rent update coefficient at 1.0224, allowing a maximum increase of 2.24% for existing contracts [3].

Landlords wishing to apply this update must notify tenants in writing with a minimum of 30 days’ prior notice. It is important to verify that this notice period has been respected and that the calculation complies with the New Urban Lease Regime (NRAU).

Legal Advice Is Essential

These changes have direct implications for financial planning and the legal security of any real estate transaction. At Global Lawyers, we assess the impact of these measures on your specific case and ensure that your interests are fully protected.

Do not proceed with a Promissory Purchase and Sale Agreement (CPCV) or with a rent update without up-to-date legal advice.

Have questions? Contact us for a detailed analysis.

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