The INE established the median value of the family housing rents paid in 2017, setting at EUR 4,39/m2. This value was overcome in Lisbon, Madeira, Algarve and Porto.
The strong tourism impact and the incentives (namely, tax incentives) on the activities of buy and sell and lease by foreigners, have made very difficult to continue living in the big city’s like Lisbon or Porto.
To promote the lease with reasonable prices and to ensure the constitutionally protected housing right, the Government proposed a series of measures, among which netting tax measures.
The Government proposed incentives, namely tax exemptions and reductions, for the owners that set the rent bellow the market’s value and those who celebrate long term contracts, which can not constitute a burden higher than 35% of the family tenants’ disposable income.
Besides the tax measures, Government wants to limit the leasing contract reports when these are celebrated with people with more than 65 years old or with an disability higher than 60%, when they live in the building for more than 25 years. It will also be more difficult to report the contract based on deep works.
In conclusion, those referred measures establishing tax benefits to the long term leasing, make it competitive compared to the current regime of local accommodation.