During this very difficult time for employees and business owners. The Portuguese government has put several measures in place to help everyone get by.

In this article, we'll take you step-by-step through the process of applying for an IHRU loan. From household identification to property identification, income and tax returns, we'll explain in 9 steps how you can apply for an IHRU loan.

This article is intended for both tenants and owners.

How to apply for a loan at IHRU

You can now apply for a loan offered by the Instituto da Habitação e da Reabilitação Urbana for tenants and homeowners who lose more than 20 % of their income due to the health crisis.

The process is conducted entirely online; once you have submitted all the required documents, the IHRU will respond within approximately 8 days.

Documents Required to Apply for a Loan

Just as you need to gather certain documents when applying for a «Classic» loan, the process is exactly the same for this application. In this section, we’ll help you gather the right documents to make your application go more smoothly.

To qualify for the loan granted by the IHRU, you must provide proof that your earned income has decreased by 20 % .

Income Taken Into Account

• If you are self-employed, only the respective gross monthly amount is taken into account;
• For Category B CIRS business or professional income, only the amount excluding VAT is taken into account;
• With regard to so-called pension income, only the respective gross monthly amount is taken into account;
• If you are a property owner and collect rent, only the value of the rent received is taken into account;
• The monthly amount of social benefits received;
• The monthly amount of housing assistance received;
• The amount of your other income received on a regular or periodic basis.

What documents prove the 20 % decrease in your income?

To prove this decrease in income, given that everyone’s salary situation is different, you must provide the following evidence:

• Income from employment is documented by the corresponding pay stubs or by a statement from the employer;
• Business or professional income in Category B of the CIRS is documented by the corresponding receipts or, in cases where receipts are not required by law, by invoices issued in accordance with legal requirements;
• Income from pensions, property, social benefits, housing assistance, and other types of income is verified by documents issued by the paying agencies. These documents come primarily from the tax and customs administration and Social Security portals, or even through a sworn statement when it is not possible to obtain such documentation;
• If the tenant suspends rent payments, the landlord must prove the loss of income by providing the tenant's corresponding notice.

The supporting documentation must be provided within a maximum of 30 days from the date of notification to the owner or the date the request was filed with the IHRU, unless obtaining the documentation depends on the date of issuance by the competent authority; in which case it must be provided to the owner or the IHRU, as applicable, along with an indication of the expected date of receipt.».

In the same decree, the government also noted that «whenever it is not possible to obtain proof of income,» such income may be verified by means of a declaration, during a one-hour appointment, or through a certified public accountant in the case of self-employed individuals under the organized accounting system.

Apply for a loan

The process begins on the Portal da Habitação page, in the « COVID-19 Support ». The site offers two ways to access it, one for the tenants and another one for the homeowners . At the bottom of the page, the option «Faça aqui o seu pedido de apoio» appears. When you click here, you’ll need to log in to the Housing Portal using your Citizen Card, digital mobile key, or tax ID number. You will then be redirected to the IHRU page, where you will need to click on a new link «Submit your application for assistance here » to start filling out the form.

You will be taken to a new page where you will find a link to the terms and conditions for obtaining the loan.

First, you’ll need to choose the type of support you’d like; you can choose between the tenant/student/guarantor helpline or the landlord helpline (for those who are losing more than 20 % of their income because tenants have decided to suspend rent payments).

The first step is the same for tenants and landlords; however, if you select the first option, you’ll need to choose whether you’re a tenant, a student living more than 50 km from your home, or a guarantor with no income. Once you’ve selected an option, you’ll need to answer certain questions with “yes” or “no.” Please note that the questions will be different if you’re a homeowner.

• if it is a permanent residence, if you have experienced a 20 % loss in your income, etc.

You will only be eligible if you answer “yes” to all the questions. If you are a guarantor, you must indicate the number of contracts for which you are the guarantor.

Once you have answered the questions, a list will appear at the bottom of the page showing all the documentation you need to provide

The next step is to identify the applicant. At this stage, you must specify the type of lease, whether you have any income, your full name, your address, your tax ID number, your email address, and your IBAN.

Step 4 involves identifying your household. In this step, you must indicate whether you have a spouse or partner and any children, as well as their relationship to you and each person’s income. Please note that you must always include a statement from the tax authorities listing the household members.

It is now time to report your rent. At this stage, you must specify the month for which you wish to receive the assistance and indicate the amount of rent you pay each month.

The next step concerns your income and employment status. First, you must specify the period during which your income decreased; you must also indicate your income category (IRS Category B). If you receive a “No” response, this means the platform assumes the decrease in income is compared to the previous month; if the response is “Yes,” this decrease may be compared to the same month last year.

After selecting the option that applies to your employment situation, you must report the amounts you received before the start of the health crisis and the amounts you received during the current month. Please note that at this stage, you must provide proof of your income.. Once you have entered your income, the website will automatically calculate the amount of lost income as well as your debt-to-income ratio. If the loss exceeds 20 % and the debt-to-income ratio exceeds 35 %, the case is eligible; otherwise, it is not.

You've just completed the bulk of the work; there are only a few steps left to finish the process. From here on, you'll need to confirm the details: you must confirm that this is indeed a permanent residence, specify the rent amount, and provide the address of your residence. However, you may also need to confirm other details about the residence, such as the owner’s tax ID number (NIF), the lease registration number, and whether the lease covers the entire house or just part of it.

The second-to-last step will present you with a summary of the terms of the loan that the IRHR will grant you. In our example, we based our calculations on a income of €500.00 and based on the actual loss of income, the IHRU will lend €288.81 per month for two months. Still using our example starting January 4, the tenant will need to begin repaying the loan to the IHRU in a total of 14 monthly installments: 13 installments of €41.67 and one of €35.91.

The loan application process with the IHRU is complete; all you need to do now is attach the required documents, as well as a sworn statement, the lease, and the direct debit authorization.

All you have to do now is click on Submeter to submit your loan application to IHRU.