In an interview with TVI and CNN Portugal, António Costa argued that the Government has decided not to prolong “a measure of fiscal injustice, which is no longer justified and which is a biased way of inflating the housing market, which has reached unsustainable prices”.
“In 2024, special taxation for non-habitual residents will end. Whoever has it will keep it”, he said in relation to foreigners residing in Portugal who already have this tax benefit.
According to the leader of the executive, “the measure for habitual residents has already fulfilled its function and, therefore, it makes no sense to maintain a tax for non-habitual residents”.
“There was a time when it was necessary. This measure made sense. In the first ten years, 59% of people who had benefited remained in Portugal, despite the regime having ended. But at this point it doesn’t make sense anymore,” he reinforced.
Can't have restrictive building rules, cheap housing and increased wealth all at the same time. The government is unfortunately choosing to ditch the last one.
By Alex from Algarve on 03 Oct 2023, 11:47
The "That's enough slices!!" meme comes in handy here...
By Rafael Rodrigues from Lisbon on 03 Oct 2023, 21:36
Here's a novel idea. How about the Portuguese government ease some of the heavy IRS burdens on businesses so that they can pay higher salaries and thus pay the increased rents that the NHR has created! If a company wants to pay an employee enough money to afford rent in Lisbon say 2k net it costs a company 3k. that's just ridiculous.
By loyd from Algarve on 04 Oct 2023, 12:59
The NHR had minimal effect on housing prices.
The housing problems must be solved in the public sector, not the private sector.
The NHR (10%) regime brought money into the country.
Builders do not want to build affordable housing.
You could argue that if there were not available buyers at these high prices, builders would be forced into building affordable housing.
It is a bad argument as there will always be wealthy people willing to pay a high price.
So by taking this away people will just stay here less than 6 months and not be be subject to any taxes.
Give the builders subsidies to build affordable housing.
Give a tax break to low income earners, so there is more spendable money for housing.
Don't keep ******* money into an institution like TAP without getting a return.
Wealthy people are that way because they control their money, going away from the NHR will do nothing positive for Portugal and be hurtful long term.
By jeffrey Kugler from Algarve on 04 Oct 2023, 16:51
As a USA taxpayer, I tried to file PT taxes early in March and take the taxes paid in PT as a credit on the USA taxes filed in April. This completely threw off our PT accountant who then did just the opposite, creating confusion and problems. Now I don't fight it. File USA in April, take credits against PT taxes in July. PT should make this easier for PT residents to do.
By Steven E Fischer from Algarve on 04 Oct 2023, 22:19
Well Coast should be doing what the Madeira Government is doing that did create a program called Casa Propria that is for help the local people that can afford a rent or buy a house . And this program helps them getting a house with affordable rental and later they can buy the house . I live in Sintra and it is quit astonish that the Council was so many empty buildings and many of them going in ruins and nothing is done . They think that stopping the NHR the housing market will improve to the local people I don't think so . What they need to address is the empty buildings that the government was create a housing program like in Madeira and instead of building new buildings use the empty building and do them up was housing for the local people .
By Isabel Oliveira from Lisbon on 05 Oct 2023, 11:46
NHR and Golden Visa simply attracted more investors (and Schengen visa seekers) not residents! Hence, increase in property prices, increase in short term rentals, maybe small tourist related business start up but no real money invested in the country as investors spend little to no time in situ actually contributing on an ongoing basis into the local economy. Rental or business revenue simply goes offshore into foreign owners bank accounts. Hence, need for Government to maintain a high tax policy on their own populations. Self inflicted problems!
By Stuart Wood from Algarve on 05 Oct 2023, 11:57
About time! Well done to the Portuguese! The NHR tax evasion scheme was thoroughly unfair. I would love to see the reaction of people in the UK, for example, if immigrants were allowed to move to the country and pay a fraction of the tax that locals pay.
By Henry from Lisbon on 05 Oct 2023, 19:39
Henry, immigrants in the UK are allowed to pay no tax, don't you know that? It's called Non-dom! Most countries have measures to attracted high net worth individuals as they are bring wealth and jobs.
By Michael Blesh from Algarve on 07 Oct 2023, 12:07
As usual, people commenting here haven't a clue what they're talking about. Non-residents, the people who then usually move to Portugal to take up residence, account for only 7% of property purchases, yes, only 7%, so this can't be the reason for house price inflation or high rents. Plus, they typically buy more expensive houses, so not purchasing at the low end of the market where people struggle the most to get on the housing ladder.
It's more about jealousy and resentment at other people's success, as though Socialists think there is a fixed amount of success in the world, so if someone is more successful, it has to be at the expense of someone else. Totally warped logic here.
By Billy Bissett from Porto on 07 Oct 2023, 14:31
If the Portuguese government really wants to lower housing costs, perhaps they should make their real estate market transparent. In Portugal sale prices are hidden from the general public, unlike in other countries (like in the USA), where sale prices for all sold homes are easily found online and it is mandatory to disclose house sale prices to the public. Here in Portugal a majority of the homes are listed for sale at values well above sales prices, and that in effect is driving prices up. Creating a transparent real estate market like the market in the USA would limit seller's ability to ask prices much higher than market value and limit the amount of sales that occur above market value.
By John from Porto on 08 Oct 2023, 09:47