'New housing tax changes: HMRC, contributions for short-term lets and changes to rents. Guidance.'

The real estate industry has undergone significant changes with the introduction of the Mais Habitação program. Find out what you need to do to take advantage of the tax benefits and avoid penalties when renting a home.

With the start of the Mais Habitação program, real estate has been directly affected by significant changes in the tax regime. From changes to income, acquisition tax and immovable property tax to the introduction of compulsory renting, this guide explains the main changes to the various regimes and how they will directly affect both owners and tenants.

Changes to personal income tax

There have been significant changes to the tax treatment of selling your own home.''Now, in order not to pay the tax, according to the decree published on October 6, the property being sold must have been the main residence of the family for the last 24 months before the sale. In addition, the regime must not have been used in the last four years, except in certain exceptional cases. But it is important to note that in the event of early termination, the loss of tax relief will be retroactive from the commencement of the contract or its renewal.

Tax relief on leasehold

The "Mais Habitação" program has also introduced a system of gradual reductions in the autonomous tax rate depending on the duration of rental contracts. For example, for contracts of less than five years, the special rate is reduced''the difference between the amount paid and the amount that would have been paid without the benefit, plus interest.

Changes to leases: new rules for new contracts

There have also been changes to the amount landlords can claim from tenants. Under the measures in the "Mais Habitação" program, the initial rent under new leases for residential purposes cannot exceed by more than 2% the last established rent in the same property.

Changes in real estate acquisition tax and real estate tax

The real estate acquisition tax exemption for the acquisition of real estate for resale now applies for only one year, rather than three, as''may exceed 30% of the ceiling price for typology and location. In case of refusal or lack of response, the municipality may proceed to compulsory lease.

Changes to domestic accommodation

Another of the counter-versus measures announced in the government's package were the changes to home accommodation, which was one of the reasons why the President of the Republic rejected the document, emphasizing the "importance" of this sector "for the economy, tourism and society as a whole." The changes envisaged by the Mais Habitação program now involve suspending the issuance of new home accommodation registrations in certain partial building sites. The only exception is the territories''hinterland and autonomous regions. In the same spirit, the registration of domestic accommodation will have a validity period of 5 years, renewable for equal periods, with the first renewal counting from the date of issuance of the license to open to the public. There will also be a new fee applicable to apartments and hotels that are located in individual parts of a building. Within the tax base, the calculation is based on economic ratios and construction activity. In addition, the registration number of the home accommodation facility will become personal and non-transferable. And the owners of this registration must confirm the realization of the activity on the RNAL platform - National Register of Home Accommodation, otherwise''registration will be canceled. In addition, there are tax benefits for those who abandon home occupancy in favor of rentals. Under the current ordinance, a temporary exemption from the IRS and IRC will be granted for leases that are prescribed for one's own permanent residence and result from the transfer of real property previously used in home occupation.