Currently, tenants can deduct 15% of their house rent from their IRS, up to a limit of 600 euros. The 200 euro increase proposed by the PS predicts that 50% of this increase will occur in 2025, 25% in 2026, and 25% in the following year.

This means that, in 2025, the maximum planned deduction will increase from the current 600 to 700 euros; in 2026 to 750 euros, and, in 2027, to 800 euros.

The PS proposal will still have to be approved in general and then promulgated by the President of the Republic, Marcelo Rebelo de Sousa. The measure should come into force on January 1, 2025.