Forced rental

This was one of the measures that generated the most controversy and is aimed at homes that have been vacant for more than two years and are located outside the interior of the country. Owners have 90 days to respond, after being notified to carry out works or put the property for rent. If there is no response from the owner within the deadline, the municipality can proceed with the forced rental of the property.

Vacation homes that are vacant because the owner is in a nursing home or providing permanent care as an informal caregiver and those of emigrants, as well as those of people displaced for professional, health or training reasons, are not considered vacant for this purpose.


Tax exemptions

Capital gains resulting from the sale of real estate to the state or municipalities will be exempt from IRS, with only those earned by residents on the list of territories and countries that Portugal classifies as tax havens, or those resulting from sales through the exercise of the right of first refusal being excluded.


Condominium owners can object to new AL

Condominium owners will now be heard in advance about new local accommodation in their units. It is stipulated that "the constitutive title of the horizontal property can be modified by public deed, with the agreement of all the condominium owners".


Suspension of new AL licenses

The issuing of new local accommodation registrations outside the country's interior territories (low density) will be suspended.

This suspension, which does not apply to the operation of properties included in the Revive Nature Fund or to the autonomous regions, "remains in all or part of the area of the municipality in which the housing shortage situation has been declared".


Renting to sublet

In order to increase supply in the rental market, the state is proposing to rent vacant houses to private individuals and then sublet them.

The rent paid to the landlord will have tax benefits as long as the contract lasts no less than five years and the rent is in line with the prices and types provided for in the Affordable Rental Support Program (PAA).


End of golden visas

With the entry into force of the new law, no new applications for residence visas for investment activity will be accepted, which will not affect the possibility of renewing permits already granted.

Applications for the granting and renewal of residence permits for investment activity will remain valid, including those that are "pending prior control procedures at local councils" on the date the law comes into force.

Author

Paula Martins is a fully qualified journalist, who finds writing a means of self-expression. She studied Journalism and Communication at University of Coimbra and recently Law in the Algarve. Press card: 8252

Paula Martins