"We have about 70,000 apartments in local housing, all over the country [...]. If we had part of the apartments, of these 70,000, which are residential apartments, [if part of them] could be mobilised for housing, it would be a great help for that which is the emergency and urgency of the housing situation", said the Minister of Housing, Marina Gonçalves, in an interview with Lusa.
Marina Gonçalves has no forecasts on the number of these houses that could be rented out, but she has no doubts: "The more that come from this number, the better response we will have in the housing market".
The Mais Habitação program includes tax incentives, so that anyone moving a house from local accommodation (AL) to renting is exempt from IRS on rent for several years, also having no limits on the definition of the rent value. On the other hand, in areas of urban pressure, the AL will be subject to an extraordinary contribution of 20% - which is levied on a portion of the income generated and whose calculation takes into account the average rental values and the property's revenue.
The objective of this measure is, says the minister, to create incentives that mobilise and not force change. "I'm not forcing, I'm not putting an end to local accommodation, I'm not forcing people to move to leasing, I'm creating an incentive to say: leasing is appealing", she stresses.
You will own nothing and be happy, right?
So who will own everything then?
By Fred Doe from Algarve on 12 Jun 2023, 11:59
So, in a nutshell, the government opens the flood gates to people from overseas without any or little background checks to see what value they bring to the country. They then suddenly realise that there isn't enough housing for them as they cannot afford, like many, the high rental rates to live here as many are unfortunately unskilled and taken advantage of. So they then decide to plunder the very people that work hard to buy a home to rent for income be it for business or retirement income or a holiday home and pay taxes for the privilege
How does this seem to be fair and an incentive? Maybe I'm missing something here. Oh and let's just destroy all the hard work to get the country up in the world rankings for tourism and investment. Politicians......
By Carlos from Algarve on 12 Jun 2023, 21:17
If the Portuguese government truly wants to increase housing available for long term rental, changing a few tourist accommodations (back) to residential lets is just window dressing.
Simply lower the rather high 28% zero exemption fixed tax rate that is now levied on rental income. Or at the very least, allow normal exemptions equal to earned income.
Small landlords are financially discouraged from entering into the sector.
By mark Holden from Algarve on 13 Jun 2023, 07:35