Housing crisis: Portugal to abolish special tax regime for new residents

In Lisbon, Portuguese citizens have demonstrated to demand a solution to the country's housing crisis. In response to this situation, the government decided to end a 10-year tax incentive scheme for new residents in Portugal. Under this scheme, those who moved to the country received tax advantages for 10 years, their income earned in Portugal was taxed at 20%. Meanwhile, income from abroad was generally exempt from taxation, with the exception of pensions, which were taxed at 10%. At the same time, Portuguese citizens who did not fall under this scheme could be taxed up to 48%.

The Portuguese government has announced the termination of''of the scheme in question, calling it a "tax injustice".

Home prices in Portugal recorded the fourth highest increase (8.7%) in the European Union in the second quarter of 2023, according to Eurostat data. And last Saturday, the Portuguese took to the streets demanding the right to housing. Tens of thousands protested in 24 cities against the crisis in the real estate market.

In addition, in February, the government stopped issuing residence permits for investors, commonly known as 'golden visas'. According to the latest data