Fresh Legal Group and Lisbeyond host a webinar on choosing between AL, medium-term, and long-term rentals
The highest monthly rent does not always produce the highest return. Portugal’s new landlord tax exemption gives property owners another reason to compare what they keep after tax, rather than focusing only on what tenants pay.
For owners deciding between Alojamento Local (AL), medium term rentals and long-term letting, the new rules could change which option makes the most financial sense.
Fresh Legal Group and Lisbeyond will host a free webinar on Wednesday, 28 October, at 4:00 PM Portugal time, exploring how owners can assess the different options for their property.
A new tax exemption, with conditions
Portugal’s Simplified Affordable Rental Regime, known as RSAA, took effect on 1 September 2026. Qualifying residential rental income can be exempt from Portuguese personal income tax, IRS, or corporate income tax, IRC.
The exemption is not automatic. The property, rent and rental agreement must meet the relevant requirements, and landlords must complete the required submissions.
Rent limits vary by municipality and property type. Contracts for a tenant’s permanent residence generally need to last at least three years, while qualifying temporary residence contracts have a minimum duration of three months.
For some owners, charging a rent within the qualifying limits could produce a better result after tax than charging a higher market rent. The outcome depends on the property and the landlord’s circumstances.
What matters is what the owner keeps
Tax is only one part of the calculation. Occupancy, management fees, maintenance, running costs and the owner’s plans for the property also affect the result.
A short-term rental may generate attractive revenue but involve more frequent turnover and greater operational demands. A longer rental arrangement may offer more predictable income, while requiring owners to consider contractual obligations and their future access to the property.
The comparison also needs to reflect the individual property. Location, size, condition and demand can all influence how each rental model performs.
Looking at expected income after costs and tax helps owners make a more informed decision than comparing advertised rental prices alone.
One property, different possible outcomes
There is no single rental strategy that works best for every owner.
A property that performs well as tourist accommodation may produce a different result when rented for several months or as a tenant’s permanent home. Equally, a tax benefit does not automatically make a particular rental arrangement the most suitable choice.
Owners need to understand both the legal conditions and the practical numbers before making changes.
The webinar will bring these two perspectives together. Fresh Legal Group will cover the legal and tax side, including the conditions attached to the different regimes. Lisbeyond will cover the market and operational side, including revenue expectations and what managing each rental model involves.
Free webinar: Is Your Property Still in the Right Regime?
On Wednesday, 28 October, at 4:00 PM Portugal time, Fresh Legal Group and Lisbeyond will discuss:
• What has changed in Portugal’s residential rental rules
• Who may qualify for the new landlord tax exemption
• How AL, medium term and long term rentals compare across property types and locations
• How tax treatment and operating costs affect net income
• What owners should check before changing their rental strategy
• How to compare the options for their own property and circumstances
The webinar is open to property owners, investors, real estate and relocation agencies, and advisers supporting clients with Portuguese property.
For owners considering their next rental agreement, the session will explain what to check and how to compare the potential returns before deciding.
Free webinar registration: https://event.webinarjam.com/7y55o/register/p8xx6t57?webinar_id=120&utm_source=fresh_portugalnews
More information: Portugal’s New Tax Exemption for Landlords: What Property Owners Need to Know
Disclaimer:
The views expressed on this page are those of the author and not of The Portugal News.