Housing
Housing tax shock took eight months to arrive as house prices rose 16.5%
The government's housing tax package took eight months to take effect, finally entering force in May amid rising prices and falling transactions. INE data shows house prices rose 16.5% year-on-year in the second quarter, while transaction volumes fell 6.4%, marking three consecutive quarters of declining sales. The measures include cutting IRS tax on rental income from 25% to 10%, capital gains exemptions for reinvesting in moderate-rent housing, reducing VAT on construction to 6%, and raising the tenant IRS rent deduction limit to 1,000 euros.
Why it matters
If you are buying, selling, renting or letting property in Portugal, the tax changes passed in May — including lower rental taxes and higher rent deductions — are now in effect, though market prices continue to show strong year-on-year growth.CNN PortugalRead original ↗
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