It will increase the amount that tenants can deduce from IRS and landlords will also pay less tax. The measures apply to those who have “moderate price” lease agreements. A concept that has not yet been well explained. Associations accuse the government of electoralism and to present too many vacancies.
Neither a week ago the government had a package for public heritage -centered housing and how it can be used for lease, now the focus is on taxes.
“For tenants, as early as 2026, an increase to 900 euros and in 2027 to 1000 euros from deduction to moderate prices collection. For landlords, reducing the IRS rate from 25% to 10% for moderate rent housing contracts,” said the prime minister.
A repeated concept, but it was not explained. “We do not know if the moderate price is moderate to the Portuguese reality. Ordained minimum that does not reach 900 euros or average salary that is just above 1500 euros”says Pedro Ventura of the Association of Lisbonian tenants.
The concept of moderate value exists and arose with the law of soils. The regime that defines where it is possible to build in Portugal and under what conditions. The calculation formula found at the time raised the value of the houses.
“It allowed homes prices to increase more than 25% of the current price. Now, if it is this concept that the government wants to apply, this will be a catastrophe,” anticipates André Escaval of the Porta A movement
It is not certain if it will be anyway. We need to wait for the government explanations that will be given this Thursday. But one day before it made promises, with Luís Montenegro to say that the government is “to boost like accessibility to housing as never before.”
He says he will simplify licenses for urbanization and building and shorten the deadlines for approvals. It is good news for owners and landlords, but it is not enough.
“50% of the price of a house is imposed. It is not cement, the house itself, is taxes. A person who buy a home to lease, takes 50 years to pay a house. You can see why no one buys homes to lease. Therefore, it was essential to resolve these things,” says João Caiado Guerreiro of the National Association of Owners.
Tenants’ representatives speak of vague measures and without practical results to solve the housing problem in Portugal. “When the Portuguese must spend 83% of the performance for housing, we realized that the measures that were taken had no effect “explains Pedro Ventura.
The government says it will also end the paids paid in IRS if this amount is reinvested in accessible housing.
