Despite a large number of objections and amendments from other parties and a veto by the President of Portugal, the parliamentary majority was able to achieve the entry into force of the “Mais Habitação” package of measures aimed at improving housing affordability.
What is the final version of the main measures provided for in the amendments entering into force?
Limits on rent increases under new contracts. The initial rent for new contracts for houses that have been on the rental market for the past five years cannot exceed 2% of the previous value.
Family IMI deduction increases. It will be 30, 70 and 140 € for one, two and three or more dependents.
Forced rental of empty housing, which applies to housing that has been empty for more than 2 years. Owners will have 90 days to start using it for housing or put it on the rental market.
Capital gains tax exemption for housing sold to a municipality, which means the IRS is cleared when the property is sold to the state or municipalities.
Cancellation of tax benefits under the IRC for investment funds participating in housing renovation.
Extraordinary tax on short-term rental housing. AL (alojamento local) in a number of areas experiencing a housing shortage will be subject to a special CEAL tax in the amount of 15% of the specially calculated tax base.
Check actual usage of AL licenses. Owners must provide evidence of continued business for two months after the changes take effect.
Condominiums will be able to block the issuance of AL licenses.
The issuance of new AL licenses will be suspended.
Tax incentives for long-term rental AL brought to the market. Owners will be exempt from IRS or IRC taxes on rent through the end of 2029 and will not be subject to any restrictions on the amount of rent they expect to charge.
Old leases before 1990 will be able to be indexed for inflation.
The state will be able to rent housing for subletting to those in need.
State guarantees for payment of rent. The state will pay rent for the tenant if the requirements are not met for more than three months, but not more than one and a half times the minimum wage.
IRS exemptions for selling a home to pay off a mortgage. The measure applies to properties sold between January 1, 2022 and December 31, 2024.
Completion of the golden visa program.