Categories: TaxationReal estate

NEW HOUSING LAW IN PORTUGAL 2020

Housing law in Portugal, what's new

September means back to work, and October means legislation. A new wave of laws will be introduced, with a real impact on citizens and businesses alike.

Among the measures that make up the Housing Act, the government has highlighted Programa Nacional de Habitação e da Carta Municipal de Habitaçãoas well as the proteção no despejo e a integração do direito à habitação nas políticas de erradicação de pessoas em condição de sem-abrigo

The government has also amended the law to allow banks to foreclose on real estate for non-payment (under certain conditions).

Being a homeowner without having to buy seems impossible, well now it is possible in Portugal. The socialist government of António Costa has finally approved Direito Real de Habitação Duradoura (DHD)

The aim of the DHD is to offer the tenant the possibility of obtaining a permanent form of housing for life. To do this, the tenant would have to pay an initial deposit and then a monthly rent. We might compare this form of acquisition to the French viager.

New taxes on investment

As of October 1, 2019, the Municipal Property Tax (MPT) amendment that puts an end to the confidentiality of land adjoining your property. This means that lawyers, bailiffs and notaries, will once again be able to consult the matrices of their clients' adjoining plots. 

Still on IMI, the government is studying the proposal to revise the location coefficients, the government should normally validate this revision at the end of October with an implementation in 2020.

Since the law was promulgated by the President of the Republic in August, changes relating to real estate investment and management companies (SIGI) have also been published in the Journal Officiel.

Condominium trustees will be required to hold a reserve account

Portugal's new housing law has regulated the activities of condominium managers, requiring them to have and use aa reserve account.

In addition, condominium managers will be able to benefit from preferential conditions for access to rehabilitation and urban renewal programs, particularly with regard to thermal and acoustic comfort, energy efficiency and accessibility for people with reduced mobility.

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