One of the most common questions among business owners and managers: is it worth it for the company to buy the space it operates in, or is it smarter to keep paying rent?
The answer is not universal - it depends on the company's financial situation, time horizon, available liquidity and, of course, the tax legislation in force. In 2026, with corporate tax dropping to 19% and new rules for the rental market, the equation has changed. This article analyses both scenarios rigorously, so you can make an informed decision.
The Market Context in 2026
Before getting into the numbers, it's important to understand the context:
- Corporate tax dropped to 19% (20% in 2025), making tax deductions slightly less advantageous - but still very relevant
- The commercial real estate market remains expensive, especially in Lisbon and Porto, with compressed rental yields
- New rental incentives were introduced by the 2026 State Budget, benefiting companies that put properties on the residential market
- Electronic invoicing and SAF-T increase the need for rigorous documentation of all costs
Option 1: Lease - Simplicity and Full Deduction
When a company pays rent for an office, warehouse or commercial space, that amount is considered a fully deductible expense for corporate tax purposes (Article 23 of the IRC Code). Every euro of rent paid reduces the company's taxable profit.
Option 2: Buy - Equity and Predictability
When a company buys a property for its own use, the asset enters the balance sheet and can be depreciated for tax purposes over time (Article 31 of the IRC Code). The accepted depreciation rate for buildings is 2% per year.
The Verdict: There Is No Single Answer
The decision to buy or lease does not have a universal answer - it always depends on each company's specific situation. What this article shows is that leasing is more tax-efficient in the short term, while buying builds equity but requires more capital.
