real estate in the Algarve versus housing package: owners protest

The measures proposed by the government to strengthen the housing sector have drawn criticism from the Algarve Hotels and Tourism Development Association (AHETA), which believes that they will "kill" the short-term rental sector without increasing the amount of housing available for local residents.

“The rules approved at the last meeting of the Council of Ministers deprive life of activity and predict its imminent demise,” states a statement from AHETA, which calls the government’s idea that these measures will “solve or contribute to solving the country’s housing problem regarding short-term rentals (AL)” a “fake.”

According to the association, the government's "Mais Habitação" (More Housing) program "instead of encouraging and strengthening economic activity to increase revenues and directing them towards the construction of housing at controlled prices and subsequent rental at favorable rates for those in greatest need," will lead to the "destruction of very well-regulated activities" in the past, the rules of which put an end to so-called "parallel beds."

AHETA reminds that the creation of regulations for short-term rental housing during holidays has put an end to the "parallel market" of tourist accommodation that existed for decades in the Algarve. As a result, the government was able to benefit from the taxes collected after the legalization of the sector.

Now AHETA claims that the new proposals put at risk all the work and investments made by property owners. "What can the government say to people who have invested all their financial resources - and many have turned to loans - to develop their business and now see a very bleak future?" asks AHETA, lamenting that "the rules of the game have changed in the middle of the championship." "What can be said about the lack of trust that the country has in the eyes of thousands of foreigners who have also made investments here?" the association adds.

AHETA also expresses criticism regarding the plan to abolish the "golden visa" program (related to housing), stating that the program (officially known as ARI) "has attracted many millions of euros in investments and taxes to the country, especially in real estate," which will now be "lost" to other countries that continue to offer attractive solutions for this foreign investment.

"Our country needs to attract permanent, serious, and legitimate investments with a long-term perspective. To achieve this, it is essential to ensure security and stability in the market and for investors, which the current measures do not provide," the association expresses its outrage, hoping for changes that will be agreed upon during the "public discussion" next month.

The meeting of the Council of Ministers last Thursday was dedicated to the "housing crisis" in Portugal and presented a number of new measures aimed at addressing it.

LUSA *Portugal is actually just one of several countries that are reducing the issuance of "golden visas": Ireland did this just days before the government's announcement, and Spain is expected to follow suit. The decision was made at the direction of Brussels more than two years ago.