Less income tax withholding for renters, more deductions for expenses

according to the explanatory note that accompanies the change proposal OE2024 presented by the Socialists in Parliament. The proposal is to increase the amount that is withheld from wages by the tax authorities by € 40 and applies to tenants who have a permanent housing tenancy agreement registered in the Financial Portal. It should be noted that the reduction will not happen automatically, so tenants wishing to take advantage of this must inform their employer, the publication said.

This is a measure similar to the one applied this year to the mortgage loan: interested parties could request the application of a personal income tax withholding rate lower than the rate,''corresponding to their monthly income and marital status, and which also included all persons with an annual gross income of € 2700. From 2024 onwards, this option will not be used for those who have requested a loan from a bank to buy a home.

Another housing-related measure proposed by the Socialist Party, linked to the rental market, is the increase in the rent deduction in the personal income tax return, which is € 98, rising from € 502 to € 600.

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This is a measure that was already foreseen by the government, but the Socialists are now going further - the increase was to be € 502 to € 550.

Exemption from taxation of profits from the sale of land to the state

In addition, the Socialist Party's proposal''provides for an extension of the exemption from income taxation on the sale of land to the state for public housing, as the 2024 Housing Package only provides for an exemption from income taxation on the sale of property to the state for housing.

According to the Socialist Party's proposal, extending the tax exemption on land sale proceeds "encourages" the sale of land to the state "without use or construction, ensuring that public organizations can build and attract more public housing," ECO reports.

Other Socialist Party proposals

In proposals to change OE2024, the Socialist Party also''Strengthens tax support for students by increasing the deduction of rental costs for transfer students from €300 to €400.

In addition to these proposals, the Socialist Party also proposes:

the introduction of a transitional period for the fiscal system of Non Permanent Residents (RNH) for the next year, to provide cases of workers, retirees or investors who prove that they have prepared their move to Portugal in 2023 by submitting an employment contract, a rental contract or even the purchase and sale of a property;
Continuation of the measure allowing withdrawal of funds from the pension savings plan (PPR) to pay mortgage payments without penalty;

The final vote on OE2024 will take place on November 29. As a reminder, the discussion and''The vote on the document is being held in a special commission from November 23 to 29. The President of the Republic announced last week that he would decide to dissolve Parliament and call early elections for March 10, 2024, following a request for the resignation of Prime Minister Antonio Costa. Marcelo Rebelo de Souza will delay the publication of the dissolution decree until January in order to pass the final vote on OE2024 and the document's entry into force.

From Lusa.