“We’ve seen this movie before: when [we are] on the eve of a debate with the prime minister, there is always something to present,” noted Paulo Raimundo, speaking to the Lusa agency, at the end of a meeting with workers at Exide, a company located in the area of Vila Franca de Xira.
Paulo Raimundo was referring to the biweekly parliamentary debate, attended by Prime Minister Luís Montenegro, scheduled for Friday.
“Our biggest problem is not taxation, our biggest problem is not landlords, our biggest problem is what is called speculation. And, in the face of the biggest problem we have regarding housing – speculation, incalculable prices, inaccessible rents – what the Government decides is a fiscal package to benefit those who brought us to this situation,” he denounced.
For the PCP secretary-general, the package presented by the Government “is inadmissible,” especially since “the housing drama” is not better today than it was a year ago, as “rents continue to rise, houses continue to rise,” and the only thing not increasing is salaries.
“In the face of this, what the Government decides is a fiscal package for landlords and to further encourage speculation, banks, and real estate funds. The Government serves those it serves, and this is proof of it,” he concluded.
The proposals submitted by the Government to the Assembly of the Republic correspond to a legislative authorization that allows Luís Montenegro’s executive to amend the VAT Code, the IRS Code, the Tax Benefits Statute, and the IMT Code with the aim of promoting the provision of housing at reduced prices.
The bill to reduce VAT on the construction of houses for sale or rent at moderate prices gives the tax authorities 150 days to refund the difference between the 23% and 6% VAT if owners build or rehabilitate properties intended for housing and sell the house for up to 648,000 euros or rent the property with a monthly rent not exceeding 2,300 euros.
With the goal of increasing the housing supply, the executive proposes that owners who sell a house be exempted from IRS on capital gains if they reinvest the earnings in residential rental properties.
A reduction in the autonomous IRS tax rate is also anticipated, applicable to income obtained by 2029 with residential lease and sublease agreements.
Instead of the current rate of 25%, the executive seeks authorization from parliament for 10%, if the rent remains within the limit considered as a moderate price by the executive (2,300 euros per month).
If the properties are owned by companies, the executive plans that only half of the property income will count toward IRC taxation.
