This legislative package has been outlined based on the "Mais Habitação" (“More Housing”) Programme, and on October 6th, 2023, the Law no. 56/2023 was published in the official gazzete, Diário da República.
Law no. 56/2023
See the main changes below:
- establishment of support for the promotion of affordable rental housing;
- development of a New Generation of Cooperativism for the Promotion of Affordable Housing;
- definition of exceptional and transitional rules regarding the rent amounts in new lease agreements, subsequent to agreements entered into in the past five years;
- definition of mechanisms to protect tenants with lease agreements prior to 1990 and to guarantee fair compensation for the landlord;
- integration of the special eviction procedure and of injunction in tenancy matters into the Balcão do Arrendatário e do Senhorio, in order to simplify and optimize its operation and strengthen the parties' guarantees;
- approval of several tax measures to stimulate and to support renting activity;
- to stimulate the transfer of short-term rentals’ apartments (local lodgment – “AL”) to residential long-term lease agreements;
- creation of an extraordinary contribution on apartments and accommodation establishments integrated into AL buildings;
- revocation of residence permits for real estate investment activities (i.e., termination of the golden visa program for real estate activities);
- extension of the scope of situations exempted from prior supervision by the Court of Auditors.
“Mais Habitação” Programme
Discover the key aspects of the programme
Following the “Mais Habitação” Programme, the State will assume the payment of overdue rents under certain conditions provided for in the Law.
The IRS and IRC benefits related to urban rehabilitation were revoked and directed towards affordable rental housing.
The transfer of AL properties to the residencial rental will benefit from an exemption from IRS and IRC on property income arising from leasing contracts for permanent residence, under certain conditions.
The tax address of the taxable person or his/her household must be established in the property disposed for at least 24 months prior to the date of disposal.
A 10% reduction in the respective rate is applied to income arising from permanent residence leases with a duration of 5 years or more and under 10 years.
CEAL is an extraordinary contribution that focuses on apartments and accommodation establishments integrated into an autonomous unit of a building allocated to AL.
The properties acquired for resale must be sold within one year in order to maintain the RETT exemption or, when RETT has been paid, to request the refund.
Possibility of municipalities increase the aggravated REMT rates.
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