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Landlords who join the affordable income scheme will have tax exemption

Landlords who join the affordable income scheme will have tax exemption

Homeowners who sign up for the new affordable rents scheme will have tax exemption and reduced IMI. The measure, approved Wednesday, addresses the middle class.

Homeowners who join the affordable lease program and make permanent, lower-income housing contracts will benefit from a tax exemption and a 50% reduction in Real Estate Tax (IMI), which can even total exemption. These are two of the novelties foreseen with the approval of this new regime of accessible incomes, the newspapers Público and Negócios announce.

The value of affordable income has no fixed rules, but the government estimates that the price reduction is at least 20% of the market value. There are, however, chambers which may decide to reduce further if market prices are too inflated, as for example with Lisbon, where prices have risen sharply.

The tax rate on property income from housing contracts is currently 28%. With the new measure aimed mainly at the middle class, the government intends to give more public support to the housing needs of families with so-called “intermediate incomes” and which do not fall under the social housing regime. In the case of IMI, the exemption can be total if the municipal assemblies accept it.

The affordable rental program will be managed by the municipal councils so that they can complement these measures with others already in force – Porta 65 Jovem, which will also be adapted to the income scheme accessible to renters between 18 and 35 years old.

The approval of the program – which was already part of the National Strategy for Housing in 2015 – is part of the New Generation of Housing Policies and is scheduled for today in the Council of Ministers, which will also approve some basic diplomas of the new policy for the sector . Legislation under the affordable lease program should apply from the first quarter of 2018. The policy for the sector will be presented by the prime minister, António Costa, during the afternoon in Parliament in the biweekly debate.

Among the new measures, there is also a guarantee of contract risk reduction that protects the landlord in case of non-compliance with rents or damage to the dwelling. Tenants may also be entitled to protection in case of sudden loss of income.

Source: “Observer”

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