The measures that the Government intends to introduce as part of the “More Housing” package have been under public consultation since Friday, March 3rd. From limits on new rents to freezing old ones, remember the main proposals presented to combat the housing crisis.
Limits on rents from new contracts
The rents established in new lease contracts will now be subject to a maximum ceiling. The proposed law clarifies the terms of these limits: the value of rents practiced in previous contracts can only add a variation rate of 2%, as well as the annual updating coefficients of the three previous years. These rules will only apply to the rental of properties that had previous contracts concluded in the last five years.
Old rents updated according to inflation
Old lease agreements will remain frozen permanently. The rents relating to these contracts prior to 1990 will now be updated annually, in line with inflation, unlike what happens today, where updates can only be made according to the tenants’ gross annual income.
Condominiums with power to end AL in buildings
The new rules that the Government wants to introduce foresee that the local accommodation that already exists in a building can be closed if that is the decision of more than half of the owners.
Regarding local accommodation, the proposed law under public consultation also provides for the issuance of new registrations to be suspended until December 31, 2030, “with the exception of areas for rural accommodation”, and also the creation of extraordinary taxation on these establishments.
Sales of real estate to the State exempt from taxation
Owners who sell residential properties to the State will be exempt from taxation on capital gains resulting from these operations. However, and contrary to what was initially planned, this exemption will have an exception: it does not apply to entities headquartered in tax havens.
“Compulsory lease” regime for vacant houses
The Government intends to create a new forced lease regime for vacant houses. The proposed law placed in public consultation stipulates that properties for residential use that are classified as vacant “may be subject to forced leasing by municipalities, for subsequent subleasing within the scope of public housing programmes”.
Owners who are approached by the State to place their vacant properties on the rental market will have a period of 100 days to put the property to use, before the State can proceed with forced leasing. If the houses are subject to coercive works because they are not in habitable conditions, the value of the interventions will be deducted from the rents charged under the forced lease.
To facilitate the identification of vacant housing stock, companies providing essential services (water, gas, electricity and telecommunications) will be obliged to communicate annually to the municipalities an updated list of houses where consumption is not detected – which, according to the legislation in force, is a requirement to consider a vacant house.
Income subsidy for families with effort rates above 35%
The Government intends to support families with effort rates above 35% in the payment of housing rents with the attribution of a rent subsidy. This aid will be granted automatically, granted when the Tax Authority verifies that the requirements are met by the families, and will have a minimum value of 20 euros per month, reaching up to 200 euros per month. And it can be accumulated with support from Porta 65, if the families in question already benefit from it.
End of granting “visas gold“. Renewal with limits
The package of measures includes the end of the “visa gold“. The measure aims to combat “real estate speculation”, with the immediate interruption of these residence permits for investment activity (ARI). The renewal of visas that have been obtained through investment in real estate, which represent more than 90% of concessions since the program started in 2012, will only happen in two scenarios: the properties in question are being used as their own home by the owners or descendants or if they are rented for residential purposes for a minimum period of five years.