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Government announces new rules for local housing and Fair Income

This Thursday, the government presented the measures of the Mais Habitação package, which
aims to combat the housing crisis.

Housing Minister Mariana Gonçalves explained that the first component of the housing package aims to stimulate new private projects with affordable rents with four areas of intervention such as “transfer of vacant public property”, “subsidized funding line, sustainability”, “predictability of income from these projects ‘ and ‘tax incentives’.

“The first task is to encourage new private affordable rental projects with promoters as partners,” said Mariana Gonçalves, who also highlighted “the ability to instill confidence in the leasing market” and the role of cooperatives. The minister also mentioned a reduction in tax leasing, as well as “fast-tracking justice” in case of non-compliance.

port 65
Mariana Gonçalves also announced that the Porta 65 Jovem is always up and running so that applications run smoothly. The Minister also announced that Porta 65+ will be created to respond to “situations of falling revenues.”

The government will also take steps to protect tenants with older contracts, Mariana Gonçalves said.

“Fair income” and changing tax incentives
The government mentions that in order to combat speculation, a “fair income” measure and a change in the resale period from 3 years to 1 year will be introduced, i.e. reduction of tax incentives to encourage re-marketing of objects).

The state will also charge for “urban IMI for village buildings” to encourage vacant buildings to be placed on the market.

New fees and benefits
Finance Minister Fernando Medina said there would be a “very significant reduction in the leasing tax” and announced that the overall rate would decrease as contracts lengthened.

Medina also clarified that landlords listing properties on the affordable rental market will be exempt from paying IMI and AIMI. Under the new measures, landlords who own property under the old lease regime are also exempt from paying the IRS and IMI.

End of golden visas
The prime minister announced the end of golden visas and said the country had issued 11,758 residence permits. “Nothing justifies having a special regime for golden visas,” António Costa said, also mentioning that “everyone will be treated in accordance with the general law and without compromising legal certainty.”

New rate for local accommodation
Regarding local housing, António Costa highlighted the growth of the sector “year by year” and said that “this year alone, more than two thousand houses are no longer available for housing, as they have been allocated for this economic activity.” The prime minister said the activity has “a very big impact” and announced an additional contribution, with the sector’s rate cut from 35% to 25%.

António Costa also mentioned that local occupancy restrictions only apply to apartments.

The package of measures proposed by the government is estimated at 900 million euros and proposes to respond to the housing crisis in five areas: protecting families, increasing the supply of real estate used for residential purposes, simplifying licensing processes, increasing the number of houses on the rental market and combating speculation.

The President of the Republic, Marcelo Rebelo de Sousa, has already criticized the program, saying that the government’s plan is “not feasible”.

Owners and workers of local housing this Thursday across the country are protesting against the government program.

Author: morning Post
Source: CM Jornal

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