More Housing / Habitation - Package

More Housing / Habitation - Package

New Legislation for 2024

The “More Housing” legislative package proposed by the government was published and came into force on October 7, 2023.

With the entry into force of Law No. 56/2023 of October 6, there will be new rules on golden visas, with no new requests for granting residence visas for real estate investment activities being accepted.

However, this does not prevent the “possibility of renewing” Golden Visas when these authorizations have been granted under the legal regime applicable until the date of entry into force of this law, nor will it affect pending processes or the possibility of residence permits for family reunification.

On the other hand, investors can also request a Golden Visa in the following ways:

Transfer of capital in an amount equal to or greater than 500,000 (euro), intended for the acquisition of parts of non-real estate collective investment entities (funds), which are constituted under Portuguese legislation, whose maturity, at the time of investment, is at least five years and at least 60% of the value of the investments is made in commercial companies based in national territory;

Transfer of capital in an amount equal to or greater than 500,000 (euro), intended for the establishment of a commercial company with headquarters in national territory, combined with the creation of five permanent jobs, or to reinforce the share capital of a commercial company with headquarters in national territory, already constituted, with the creation of at least five permanent jobs or maintenance of at least ten jobs, with a minimum of five permanent ones, and for a minimum period of three years;

Minimum investment of 500,000 euros in scientific research activities;

investment of at least 250,000 euros in artistic production, recovery, or maintenance of cultural heritage. This value may benefit from a 20% reduction if carried out in low-density areas. Low-density territories are considered to be those defined in Ordinance No. 208/2017, of July 13, with less than 100 inhabitants per km2 or a gross domestic product (GDP) per capita less than 75% of the national average.

New rules for local accommodation, namely:

The non-transferability of the AL: the registration number of the local accommodation establishment becomes personal and non-transferable, even if it is owned by a company. This rule does not apply only in the case of succession.

The possibility of opposing the condominium to AL registration: In the case where the local accommodation activity is carried out in an autonomous fraction of a building or part of an urban building capable of independent use, the assembly of condominium owners, by decision of at least two-thirds of the permission of the building, may oppose the exercise of local accommodation activity in said fraction, except when the constitutive title expressly provides for the use of the fraction for local accommodation purposes or there has been an express decision by the condominium assembly to authorise the use of the fraction for that purpose.

Suspension of new local accommodation registrations: The issuance of new local accommodation establishment registrations, in the form of apartments and accommodation establishments integrated into an autonomous fraction of a building, is suspended throughout the national territory, with the exception of interior territories.

Extraordinary contribution on apartments in local accommodation: An extraordinary contribution is created on apartments and accommodation establishments integrated into an autonomous fraction of a building in local accommodation, the regime of which is approved in the annex to this law and of which it forms an integral part.

The new law also contains “legislative changes in the context of leasing and to speed up legal proceedings," among which the fact that the tenant and landlord counter (BAS) stands out is now intended to ensure the processing of the special procedure for eviction (with exclusive jurisdiction) and injunction in matters of rental.

Law No. 56/2023 of October 6 provides for even more new features, including an exemption from taxation of capital gains for owners who sell houses to the state, an increase in the deduction for family dependents under the Municipal Property Tax (IMI), changes to the autonomous rate of property income, and tax exemptions for owners who remove their houses from local accommodation until the end of 2024.

Dra. Ana Firmino

Attorney at the M-E&F Law Firm