The new elected government announced a set of measures to address the housing crisis. The new housing strategy (“Construir Portugal”) aims to provide an urgent response to difficulties in buying or renting a home.
In a nutshell, this proposal includes the following measures from a tax standpoint:
- Exemption from Property Transfer Tax (IMT) and Stamp Duty for individuals under 35 years old on properties up to € 316,000 (the value corresponding to the fourth bracket of IMT), who purchase their first property. The government expects to implement this measure from August 1, 2024;
- Reduction of VAT from 23% to the minimum rate of 6% for property construction works and rehabilitation, with limits based on prices. The government expects to implement this measure until the end of the legislative term;
- The end of the extraordinary contribution on local accommodation is also planned (“contribuição extraordinária sobre o Alojamento Local”).
For more information and assistance with taxes or real estate transactions, please contact us through geral@sbpslegal.com.