“I can give a guarantee: The accounts will continue to be accurate. I know some will be unhappy with this information, but the Portuguese will be pleased, […] we will continue to maintain accurate accounts in Portugal,” stated Miguel Pinto Luz tonight in an interview with RTP.
The official did not disclose the impact that the recently approved housing sector measures will have on the State Budget, deferring to the macroeconomic and fiscal policy scenario that the Minister of Finance, Joaquim Miranda Sarmento, will present this month.
Last week, the government approved a set of measures, including reducing the VAT to 6% on housing construction up to 648,000 euros, increasing IRS deductions for tenants from 700 euros to 900 euros in 2026 and to 1,000 euros in 2027, reducing the IRS from 25% to 10% for landlords with rents up to 2,300 euros, which is the ceiling for the concept of moderate rent as classified by the government, and increasing the IMT for non-residents.
Miguel Pinto Luz accused the PS and left-wing opposition of being “angry with the government for lowering taxes” and considered that thinking the market will respond to the fiscal ceiling of 2,300 euros with rent convergence at that amount is “flawed reasoning.”
Regarding the increase of the IMT for non-residents, which excludes emigrants, the minister mentioned that the value is not yet defined but is being calculated to maintain the necessary “balance” for accurate accounts.
“It will be sufficient to aid the balance, but it will not compromise the market that has been generated, because we must continue to attract this investment,” he emphasized, noting that this measure will affect “a very small fraction of those investing in Portugal.”
When questioned about the discussions of the State Budget for 2026, Pinto Luz remarked that “the new political scenario has brought more stability to the Assembly of the Republic,” predicting, therefore, “that the process will be different from that of a year ago.”
“I hope there will be responsibility [from all parties], because Portugal has experienced too much instability in recent years, which was not good for the Portuguese,” he highlighted.
