Portuguese Government Set to Renovate 'Mais Habitação” Package

The newly elected Portuguese government, inaugurated following the general elections on March 10th, 2024, seeks to revoke certain measures implemented by its predecessor, regarding the framework of the "mais habitação" package.

The "mais habitação" package, introduced by the previous Portuguese government, aimed to stimulate increased housing availability at affordable rates, addressing the country's housing crisis. This comprehensive initiative sought to address various aspects, including local lodging regulations, residential leasing policies, tax implications, and management of vacant properties.

Since its inception, the "mais habitação" package has been subject to scrutiny and critique, eliciting opposition from both political opponents and industry associations alike.

Because of the package's contested limitations and the outcome of the general elections, the new government has prioritised revising and amending these measures.

Contextually, the Socialist Party (PS), the former ruling party responsible for initiating the "mais habitação" package, has been succeeded by the Democratic Alliance (AD), led by Luís Montenegro. This shift in political power facilitates the opportunity for revisions to the package.

Foremost among the new executive's priorities is the revision of local lodging policies. Of particular focus is the abolition of the special contribution to local accommodation (CEAL), currently set at 15%, calculated based on various factors including the economic coefficient of local accommodation and urban pressure coefficients.

It is important to note that CEAL applies exclusively to local lodging establishments and accommodation facilities in urban areas, with exemptions granted for accommodations in rural regions and primary residences utilised for temporary lodging for up to 120 days annually.

Additionally, the government aims to eliminate the expiration of licences introduced under the "mais habitação" package. Presently, licences are subject to a five-year validity period, with those issued before the legislative package will be reviewed in 2030, and subsequent renewals extending for five-year periods.

These proposed measures were central to the Democratic Alliance's electoral campaign promises and have been corroborated as priorities within the government's legislative agenda, pending approval in parliament. We remain attentive in monitoring these developments and pledge to keep our clients informed on any political changes that may impact their affairs and interests in Portugal.