From, 2 % limit imposed for rental housing investments

Investor who buys a property and then rents it out will be subject to a 2% cap on income earned in the last five years, even if the property was owned by another owner. Under the new law, which still needs to be approved by the President of the Republic, any new contract that can be concluded cannot exceed 2% of the value of the last rent, reports Jornal de Negócios.

The restriction was not entirely clear to experts in the field, but the Ministry of Housing explains that it refers to the building, not the owner. That is, even if there has been a transfer of ownership, the restriction continues to apply to that property.

In practice, in addition to having to "check for mortgages, encumbrances, encumbrances, leases or other encumbrances", "the investor will have to find out if there has been a lease in the last five years and what income the previous owner received", since "with the expected publication of the Mais Habitação package, it will be obliged to comply with the 2% restriction on the rents applied in the last five years, even by another owner", explains Regina Santos Pereira, rental and real estate specialist at SRS Legal.

Support The Portugal News

We pride ourselves on providing our readers from around the world with independent, honest and impartial news for free - both online and in print. Our dedicated team supports the local community, international residents and visitors of all nationalities through our newspaper, website, social media and our newsletter. We realize that not everyone can afford to pay for our services, but if you are able, we ask that you support The Portugal News by making a contribution - no matter how small.