The Minister of Infrastructure and Housing, Miguel Pinto Luz, announced today that the government is collaborating with the Portuguese Banking Association and financial institutions to develop new products aimed at easing access to housing credit for Portuguese citizens. Luz emphasized that the initiative also seeks to facilitate credit access for those needing capital for construction projects. These remarks were made during a press briefing, held without a question session, concurrent with today’s Council of Ministers.
Minister Luz indicated that the government, led by Luís Montenegro, intends to propose additional measures to address the nation’s housing crisis, supplementing those approved today and in the previous week.
“We are finalizing measures to regulate the real estate mediation sector, establish an emergency housing fund, manage evictions, revisit the New Urban Lease Regime (NRAU), address undivided inheritances, provide public guarantees to finance public-private partnerships (PPPs), and fund both private and public efforts around housing at moderate prices,” stated Miguel Pinto Luz.
The government ratified, among other provisions, an increase in IRS deductions for rent expenses to 900 euros next year and to 1,000 euros the following year. There will also be a reduction in the tax rate from 25% to 10% for property owners who offer moderate rents, an IVA rate of 6% for housing construction with a sale value around 648,000 euros, and similarly, a 6% IVA rate for leases up to 2,300 euros.
