Raising Rents in 2023 | Support for Landlords
The support provided for landlords is as follows:
Increase in Rents 2023 | The direct application of the law results in a 5.43% increase (CPI without housing in the 12 months ending in August). To compensate landlords for the differential vis-à-vis the 2% increase, part of the respective property income will be excluded from taxation (IRS or IRC). The value of the excluded income will be calculated so as to neutralize the impact of the rent cap for landlords, depending on the tax rate to which their property income would be subject. These rates differ depending on the duration of the contracts:
| Contract duration | IRS Rate | Taxation Coefficient |
| < 2 anos | 28% | 0,91 |
| 2 to 5 years | 26% | 0,90 |
| 5 to 10 years | 23% | 0,89 |
| More than 10 years | 14% | 0,79 |
| More than 20 years | 10% | 0,70 |
In IRC, the updating coefficient is always 0.87 because the applicable rate does not vary depending on the contract.
This updating process results from the draft law delivered by the government in the Assembly of the RepublicIt establishes that the 2% limit does not apply to contracts entered into on or after January 1, 2022.
Thus, if the lease was entered into in January 2022, the increase may take effect as of January 2023. However, if the contract was signed after January 2022, the landlord may only increase the rent after 12 months have passed since the beginning of the contract (and should always communicate the intention to increase the rent at least 30 days in advance).
Between 1990 and 2021
For contracts entered into between 1990 and 2021, inclusive, it is already known that there will be a 2% increase limitation (see the article "Increase of Rents in 2023 set at 2%") and the landlords will receive some compensation (reduction) when calculating the tax to be paid, in the liquidation of the IRS or IRC, to be held in mid 2024.
Source: .vidaeconomica.pt/jornal-fiscal
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