The new Government brings news to the housing sector.

What changes?

From the outset, a series of measures from the Mais Habitação program - from the previous socialist Government - which the new executive promises to revoke. Namely, the forced rental of properties that had been vacant for more than two years - this was one of the most controversial measures of the previous Government.

Another measure: the end of limits on rent increases. These are the first measures that the new Government intends to reverse to stop the so-called housing crisis. The freezing of old rents may also be reversed by the current Government. But this can make life difficult for tenants in a more vulnerable economic situation. 

The government intends to protect them through a support scheme, which involves subsidizing tenants who need it most. Or, alternatively, the maintenance of a dynamic income subsidy that guarantees a contribution to families with higher effort rates. To access this support, tenants are required to provide proof of their effort rate and income level.

In terms of incentives the Government intends to invest in new benefits, namely tax exemption on the purchase of housing for young people up to 35 years of age. And a public guarantee for 100% bank financing when purchasing a first home.

With regard to youth rentals, the Porta 65 program will not only continue, but its scope will be expanded to reach more young people without access to the rental market.

However, there is a difference between what the AD said in the campaign and the Government's program: the electoral promise was that Porta 65 would have as its starting point a public guarantee to receive support. This paragraph is not included in the Government's program, which only talks about increasing the scope of the program aimed at supporting young rentals.

When it comes to construction there are also changes with the new Government: an exceptional and temporary regime for the elimination or reduction of tax costs in construction or rehabilitation works on properties intended for housing comes into force. This means that these works are now taxed with VAT at a minimum rate of 6%. 

The Government's program also includes the creation of “agricultural housing” at more affordable prices in rural and interior areas, as a way of reversing desertification in the municipalities most threatened by population loss.

In terms of touristic real estate, almost everything changes in relation to what was in force under the previous socialist Government: the extraordinary contribution on local accommodation (AirBNB’s etc) will be eliminated, as well as the expiry of previous licenses. Extraordinary contribution and expiry of local accommodation licenses will be revoked. On the other hand, owners of local accommodation now have to provide proof of maintaining the activity. Otherwise, their registrations will be subject to cancellation. Exempt from this obligation are properties in their own permanent residence that have been operated for less than 120 days.