Government won't stop rent rises until 2024

The Portuguese government has announced that it will not impose a cap on rent increases next year. Instead, it will create a support of 4.94% of tenants' monthly payment. The announcement was made by Housing Minister Marina Gonçalves at a press conference.

She explained that this support will be given to tenants with incomes up to tax level 6 (between 27,119 and 39,791 euros per year) and those whose financial burden is more than 35%.

An increase in the tax deduction for rental expenses from 502 to 550 euros was also approved.''However, these measures only apply to residential buildings, not commercial properties. The exceptions are old pre-1990 leases and new leases entered into after the introduction of the Housing Scaling Package, which prohibits rent increases of more than 2% over the next seven years.

In case the renewal factors have not been applied in the new contract, the value of the factors for the previous three years can be added to the old rate, which is 5.43% relative to 2023. In this way, the Portuguese government supports the owners' proposals, which call for rent increases of no more than 6.94% in 2024 and the creation of support for tenants with financial difficulties.

They''between them and the state so that no family is left without the ability to pay for their housing.