At issue are two legislative authorization bills presented by the Government on December 2.
Bill 47/XVII/1 provides for a set of tax relief measures to promote the supply of housing, including a reduction in VAT to 6% on the construction or renovation of properties for rental, with a rent value of up to €2,300, or for the purchaser's own permanent residence, with a sale value of up to €660,982. The proposal also provides for a reduction in the IRS tax rate from 25% to 10% on rental contracts for moderate-rent housing, i.e., up to €2,300, the consideration of only 50% of the moderate rent for corporate income tax purposes, as well as the exemption from capital gains tax on the sale of homes, if the amount is reinvested in the purchase of properties for moderate-rent housing.
In turn, Bill 48/XVII/1 authorizes the Government to review the regime applicable to the licensing of urban development operations and to amend the legal regime for urbanization and construction (RJUE) and the legal regime for urban rehabilitation. This proposal simplifies procedures and reduces deadlines, transferring responsibility for full compliance with legal standards to developers and technicians.
Both proposals were debated this morning in the Assembly of the Republic and then voted on in general terms.
The first proposal, which contains tax relief measures, was approved with votes in favor from the PSD, CDS, and Iniciativa Liberal parliamentary groups, abstention from Chega, and votes against from the remaining benches. The bill was sent to the parliamentary committee on budget, finance, and public administration for discussion and voting on the details.
The proposed amendment to the RJUE was approved with votes in favor from the PSD, CDS, and Iniciativa Liberal parties, abstentions from the PS, Chega, and JPP parties, and votes against from the remaining parties. This proposal was referred to the parliamentary committee on infrastructure, mobility, and housing.
Parliament now has 90 days to discuss and vote on the proposals in the respective parliamentary committees, where the bills may still be subject to amendments until the final overall vote in plenary.
Translated with DeepL.com (free version)
Image credits: © Scott Webb | Unsplash
