Portugal's Government to Unveil New Housing Measures, Targeting Tax Breaks for Rental Market
The Portuguese government's Council of Ministers is scheduled to convene this Thursday to approve a new set of measures aimed at addressing the country's housing challenges, with a specific focus on fiscal policy and the rental market. According to reports, the primary agenda item involves the introduction of new tax benefits within the Personal Income Tax (IRS) framework for both landlords and tenants. This move is a direct response to the significant increase in rental values across Portugal, which have more than doubled in the last 15 years, placing considerable strain on household finances. The government's objective is to create a more favorable environment for "moderate rents" by adjusting the tax incentives available to property owners.
This legislative push follows a recent government initiative focused on the management and mobilization of public property to increase the overall housing supply. The shift in focus towards fiscal mechanisms and the legal framework for leasing indicates a broader strategy to intervene in the rental market's dynamics. The planned measures are expected to address the tax burden on rental income, which has long been a point of contention for landlords and has been cited as a factor contributing to the limited availability of long-term rental properties. The government's plan aims to stimulate the supply of homes for rent by making it more financially viable for owners to lease their properties to residents rather than opting for more lucrative short-term tourist rentals.
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In addition to the tax-related proposals, the government is also expected to discuss the simplification of administrative processes within the housing sector. This could involve streamlining procedures for rental contracts, reducing bureaucracy, and potentially introducing more efficient mechanisms for resolving disputes between landlords and tenants. The announcement of these measures is being closely monitored by real estate professionals, investors, and the general public, as the specifics of the tax benefits and regulatory changes will have a direct impact on the financial calculations for buy-to-let investments. The policies approved in the meeting will provide a clearer picture of the government's strategy for tackling the housing affordability crisis and its vision for the future of the Portuguese rental market. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.