The Government approved this Friday (March 27), at a Cabinet meeting, the decree-law regulating the housing tax package, following the legislative authorization obtained from Parliament and promulgated on March 2 by President Marcelo Rebelo de Sousa. The legislation amending the regime applicable to the licensing of urban development projects was also approved, along with changes to the legal framework for urbanization and construction (RJUE) and the legal framework for urban rehabilitation.
The announcement was made by Luís Montenegro at the press conference following the weekly Cabinet meeting, and the prime minister emphasized that these are “strategic structural instruments for transformation and reform, promoting incentives for investment and the provision of housing.”
"The aim of the tax package is to ‘increase supply in the medium term and, in doing so, moderate prices to make housing more affordable,’ Montenegro stated. As a reminder, the package includes several tax cuts, starting with the VAT rate applicable to housing construction, which could be set at 6%—the reduced rate —provided the properties are intended for owner-occupied and permanent housing and are placed on the market at “moderate” prices—more specifically, up to 2,300 euros for rentals and 660,000 euros for sales. Self-construction, provided it is also for owner-occupied and permanent housing, will also be covered.
Landlords will now be able to benefit from an income tax rate of just 10% provided that the rents they charge fall within the aforementioned moderate range. And if the owner of the rented property is a company—or a self-employed professional under the organized accounting regime—only 50% of the property income will be taken into account.
Enhanced Simplified Urban Planning
The legislation on urban planning permits, meanwhile, streamlines a set of regulations and, in particular, shortens the response times for local authorities in the context of urban planning permits. Thus, a simple request for preliminary information (PIP) must be answered within 15 days, and if it is a qualified PIP, the deadline is 45 days for subdivision operations and 20 days for other urban planning operations. In both cases, the deadline begins at the end of the period for rectification and preliminary review.
Furthermore, certain concepts are clarified, such as what is meant by reconstruction (without an increase in volume); expansion (with an increase in volume); alteration proper; or minimal urban planning significance.
The general rule remains that urban development projects in areas with defined urban planning parameters must be carried out by means of prior notification; however, the objective of standardizing parameters at the level of municipal master plans, detailed plans, implementation units, or subdivision projects is reinforced. In other words, it remains prohibited to opt for a permit when the procedure provided for by law is merely prior notification.
Conversely, prior notification procedures are being streamlined, as they no longer include a rectification phase. In other words, developers bear greater responsibility, and municipalities intervene less, but they will subsequently have enhanced duties during the inspection phase.
“The goal is clearer rules, more predictable processes, shorter and more agile deadlines, and more homes available to the Portuguese at lower costs for builders,” summarized the prime minister.
Image credits: © Jakub Zerdzicki | Unsplash
Translated with DeepL.com (free version)
