The Portuguese Housing Law in brief

The past year has seen a lot of commotion around all the measures taken by the Portuguese government to improve the lack of affordable housing for locals. Controversial rules and restrictions for one and great measures for the other.

For anyone who is not exactly informed, Westmark real estate gives you an overview of the most important points below.

1. Housing crisis in Portugal: The housing crisis remains a central challenge. The demand for affordable owner-occupied and rental homes continues to grow.
   
   
2. Year of transition: The government led by Luís Montenegro introduced new measures through the Construir Portugal programme. Goals include:
• Doubling of planned social housing: from 26,000 to 59,000 homes by 2030.
• Relaxation of regulations and increased use of land for affordable housing solutions.
  
  
3. Deprecations from previous programs:
• The forced rental of vacant houses has been withdrawn due to objections about property rights.
• An additional tax on local rentals (CEAL) and other tax measures have been relaxed.
  
  
4. Support for young people and cooperatives:
• Exemptions from transfer tax and stamping fees for young buyers.
• Government guarantee on mortgages until 2026 for first-time buyers.
• Subsidies for housing cooperatives.
  
  
5. New land law: Constitutional legislation has been amended to allow housing construction on rural land, but criticism remains about the effectiveness and possible risks of speculation.

In conclusion, 2024 was a year of policy changes, transitions, and housing challenges. Want more details on a specific aspect?

Source: Westmark estate agency www.westmark.pt