Housing in Portugal: changes blocked by Marcelo

In July, changes to legislation on renting, short-term leases, empty properties and taxes were passed, only to be approved by parliament by an overwhelming Socialist vote. However, they were rejected on Monday by the president of the republic, Marcelo Rebelo de Souza.

Marina Gonsalves, the housing minister, reiterated her position that the More Housing program is balanced, while the Socialist Party said it would confirm the measures after Parliament's summer recess.

Global final vote in Parliament took place five months after the approval of the first version of the program between the ministries of the relevant instructions with some changes. Although the package passed by Parliament was rejected, a government law is being passed that simplifies the procedure for obtaining permits related to housing, which was signed by Marcelo Rebelo de Souza.

With the simplification of architecture projects, they will be licensed only on the basis of a law of sole responsibility of project developers, and public authorities will be penalized for delays in issuing opinions.

The main measures envisaged in the More Housing program:

• Restrictions on rent increases under new contracts.
• Enhancing property tax deductions for families.
• Reducing the special tax rate on personal rental income tax.
• Compulsory rental of empty dwellings.
• No reverse paired contracts.
• Special tax for short-term rentals.
• Update short-term rental registers.
• Veterans First.
• Tax incentives for redevelopment.
• Rural areas and tree transplants.
• Municipal renewal and other rent support measures.

These measures aim to create a more sustainable and affordable housing market and mitigate the challenges faced by renters and owners.