New legislation provides for a 10% personal income tax rate on certain rental income from properties intended exclusively for residential rental, provided that the legal requirements are met, including rent limits.

And yes: the tenant can be a company. However, the tax treatment depends on the actual purpose of the tenancy and compliance with the applicable legal requirements.

That is why, before entering into or changing a lease, it is important to assess who is renting, for what purpose and under which conditions.

In Tax Law, the details can make all the difference.

*This information is of a general and abstract nature. Therefore, any decisions regarding these matters should be made with the support of qualified professionals and assessed on a case-by-case basis. Should you require further clarification on this topic, please contact us at soc.advogados@magnaadvogados.pt.