HOUSING IN PORTUGAL 2020

Article produced by our partner:  Living in Portugal Consulting

Housing in Portugal, what's new in 2020

September is synonymous with a return to work, and October will be synonymous with legislation. A new wave of laws will be introduced that will have a real impact on citizens and businesses alike.

Among the measures included in the Housing Act. The government has highlighted Programa Nacional de Habitação e da Carta Municipal de Habitação. As well as the proteção no despejo e a integração do direito à habitação nas políticas de erradicação de pessoas em condição de sem-abrigo. 

The government has also amended the law allowing banks to seize property for non-payment (under certain conditions). 

Owning your own home without having to buy seems impossible, but now it's possible in Portugal. António Costa's Socialist government has finally approved Direito Real de Habitação Duradoura (DHD). 

The aim of the DHD is to offer the tenant the opportunity to obtain a permanent form of accommodation for life. To do this, the tenant must pay an initial deposit and then a monthly rent. We could compare this form of acquisition to the French viager. 

New taxes on investment

From 1 October 2019, the Municipal Property Tax (MPT) Amendment. Which puts an end to the confidentiality of land adjoining your property. This means that solicitors, bailiffs and notaries, will once again be able to consult the matrices of their clients' neighbouring plots. 

Still on IMI. The government is studying the proposal to revise the location coefficients. The government is expected to approve this revision at the end of October, with implementation in 2020.

Since its promulgation by the President of the Republic in August. The changes relating to real estate investment and management companies (SIGI) have also been published in the Official Journal.

It will be compulsory for co-ownership trustees to hold a reserve account

The new law on housing in Portugal has regulated the activities of co-ownership trustees and requires them to have and use aa reserve account.

In addition, co-ownership managers will be able to benefit from preferential conditions for access to renovation and urban renewal programmes. This applies in particular to thermal and acoustic comfort, energy efficiency and accessibility for people with reduced mobility.