One of the most significant changes is the introduction of a reduced 6% VAT rate for certain residential construction and renovation projects linked to permanent housing or long-term residential rental schemes.

According to the decree-law, the reduced VAT rate will apply to qualifying projects launched between September 25, 2025 and the end of 2029, with the measure effectively coming into force in July 2026. The government has also allowed the reduced rate to be applied retroactively from January this year through an agreement between buyers and construction companies.

The new rules apply both to homes built for permanent residence and to properties placed on the long-term rental market.

Under the legislation, buyers who benefit from the reduced VAT rate but later fail to use the property as their primary residence will not lose the VAT benefit itself. However, they could face an additional 10% increase in IMT property transfer tax.

For rental housing, landlords must keep properties available for residential leasing for at least 36 months during the first five years after construction is completed. Rental prices must also remain within government-defined limits.

The package also includes tax incentives aimed at encouraging moderate-rent housing, including a reduced 10% IRS tax rate on qualifying rental income until the end of 2029.

In addition, capital gains reinvested into residential rental properties may become exempt from IRS taxation under certain conditions, while investment funds focused on moderate-rent housing will receive additional legal protections under the new framework.