The Portuguese Association of Developers and Property Investors (APPII) is proposing a package of measures to solve the housing crisis, which includes tax reform, namely a reduction in the VAT applied to construction.
“Portugal has been experiencing a unique crisis in the housing sector for several years now, which is getting worse. APPII believes that it cannot wait any longer and that the time has come to act,” he said in a statement.
In this sense, the association presented a set of basic measures to begin solving this problem.
In tax matters, it is proposed to end the maximum VAT (value added tax) of 23% for construction and the additional tax on municipal property (AIMI).
For the association, the tax burden in the housing sector is excessive and ranges from 40% to 50% (including all fees).
Therefore, it is essential to implement tax reform in this sector, “which will allow more houses to be built for all Portuguese.”
On the other hand, he called for trust and legislative stability, emphasizing that in order to attract investors it is necessary to create “a regime pact with incentives for those who undertake to build new housing, with a guarantee that these measures will be in force for 10 years.” , 20, 30 years old.”
Added to this in the case of rentals is the balance between protecting the tenant and the owner, which he says has never been this way.
Developers and investors are also recommending “significant improvements” to the city’s licensing process.
In this context, they are calling for the creation of a national strategy with the goal of creating more housing for all and faster approval of housing projects, taking into account that the longer the approval period, “the more expensive construction becomes.”
Although Simplex is classified as a “good first step”, the association said there were some concerns, particularly around its practical application, and called for “rapid approval” of building codes.
According to the same note, it is also proposed to create incentives for investors willing to invest in the creation of new housing, the collection and sale of vacant public assets for the construction of affordable housing, and the transfer of public land for the development of affordable housing. the same goal.
In addition, provision is made for the creation of subsidized affordable housing lines, VAT reductions on issues related to green building and affordable rental projects, and exemptions from taxes and fees on land purchases for affordable rental projects.
The association also asked for incentives for young people, such as the creation of subsidized home purchase lines for people under 30 and relief from burdensome council property transfer tax (IMT) and stamp duty for young people. “to help housing mobility.”
Founded in 1991, APPII represents the main national and foreign development and investment companies operating in Portugal.
According to data released by the association, the real estate development and investment sector accounts for 15% of the nation’s GDP (gross domestic product).