During remarks to journalists at the Festa do Livro in Palácio de Belém, Marcelo Rebelo de Sousa stated he had reviewed the set of measures introduced by the government pertaining to housing. He praised the investment secured for home construction and commended the executive’s initiative to present the measures as a “very broad and very strong package.”
Regarding the European Investment Bank (EIB) investment, the President noted it is a “significant amount” that “allows for the construction of many houses,” citing it as a “government achievement” and lauding the executive’s move to “seek more funds from Europe.”
Concerning the measures, Marcelo Rebelo de Sousa expressed approval of the government’s strategy to present “a very broad, very strong package with many measures” to serve as a “shock package” in responding to a “shock situation,” rather than introducing “one measure here and another there.”
“Some measures may indeed succeed, while others might not. Some always tend to be more successful than others, depending on the responses of people, families, and markets. It’s always preferable in a shock situation, as it requires a shock intervention,” he added.
On the government considering a rent up to 2,300 euros as moderate, the President stated that the recipients of the measures will determine if this is a reasonable figure. He emphasized that “it’s better to play clearly and strongly, taking the risk that some measures succeed and others do not” rather than allowing time to pass and only experiencing “minor shocks.”
On Thursday, following the Council of Ministers, Luís Montenegro announced that the government will reduce the VAT rate to 6% for the construction of houses for sale up to 648,000 euros or, if for rent, with rents up to 2,300 euros—a tax regime to remain in effect until 2029.
Conversely, the minimum VAT rate of 6% will also apply “to construction and rehabilitation of buildings” for leases up to the value of 2,300 euros.
