IRS exemption and IMI discount for landlords with affordable incomes
From now on, all owners in Portugal, who inscribe their properties in the affordable lease program – and through it establish permanent tenancy agreements with the tenants – will have tax benefits. With this new solution created by the Government, landlords with affordable incomes will be exempt from IRS on the property income and will pay only 50% of the Municipal Property Tax (IMI). This measure is part of the new “Affordable Rental Program” that integrates the “New Generation of Housing Policies”, to be approved this Wednesday in Council of Ministers.
It is considered affordable income that is worth 20% less than the reference market, but in areas where the price of rent is very inflated, as is the case of Lisbon, the reduction adopted by the municipality may be higher. Currently, rents pay an IRS of 28%, a value that the owners consider high and responsible for the reduced dynamism of the market and consequent flight to the Local Accommodation. But with this new measure, landlords go out to win. So, those who charge less, will also pay less.
The Government therefore hopes to solve the problem – notably that of households that can not afford market prices – through taxation, giving more incentives to homeowners. According to the document, this measure is a response “to failing households, including by this way the intermediate incomes population that can not access adequate housing in the market without this imposing an overload on their family budget.”
But the news does not stop here. According to the Público newspaper, the executive of António Costa wants to go ahead with the creation of “an insurance or guarantee fund” that intends to protect landlords in cases of non-payment of rents by the tenants. In addition, a protection measure is also planned for tenants if their incomes suffer a sudden break.
From the article published in “Jornal Público”.