From July next year,
landlords with rents prior to 1990 will be able to apply for compensation from the Institute for Housing and Urban Rehabilitation (IHRU), as announced by the Ministry of Housing. If you have any doubts about
how it will work, where you can apply or what kind of documents you need to submit,
SUPERCASA News will answer your questions and explain everything about this measure, which aims to support and provide stability for tenants aged 65 and over.
As published in the Diário da República this Wednesday, December 27,
the support is limited to 1/15 of the Tax Asset Value (VPT) of the rented property, divided into 12 months,
and covers residential rental contracts signed before November 18, 1990.
Who can benefit from this support?
All landlords with rental contracts prior to the stipulated date, which is November 18, 1990, can benefit from this support. It is estimated that there are already around 124,083 private landlords with eligible rental contracts. And the measure, as announced by the Ministry of Housing, has a total cost of 26.6 million euros per year.
Where can I claim this compensation?
Since the measure only comes into force on July 1, 2024, the landlord, meeting the eligibility conditions mentioned above, must submit an application for the compensation to the IHRU, to which he must send all the relevant information so that the final decision on the application can be considered.
You will need to submit the following documents:
- Proof of the date on which the lease contract was signed, by registering the contract, which you must submit to the Tax and Customs Authority;
- The framework of the rental contract, which must correspond to one of the situations set out in articles 35 and 36 of the NRAU, by providing proof of the request for exemption from Municipal Property Tax (IMI) in accordance with the situations described in these articles;
- Proof of the monthly rent, through a rent receipt, model 44 or invoice issued by the landlord to the tenant;
- The Tax Asset Value (VPT) of the rented property, by means of a copy of the urban land registry proving the VPT on the date the decree-law came into force.
How is the support awarded?
After submitting your request, with all the necessary documents and information, the IHRU has 30 days to decide whether or not to award the compensation to the landlord. The request for compensation to be awarded takes effect from the date the request is submitted to the IHRU.
If a request for exemption from IMI is subsequently rejected, the landlord must inform the IRHU within 30 days in order to receive a refund of the compensation received.
How is the support paid and how long does it last?
If the application is accepted by the IHRU, the compensation is paid to landlords for a period of one year, which can be renewed for equal and successive periods, provided that the landlord can prove, before the end of this period, that the requirements initially considered for the award of the compensation have been maintained. This proof must be provided again to the IHRU.
If there is an annual update of the rent, the amount of support will change, and the landlord is responsible for informing the IHRU, within 30 days of the update, that there have been changes in the rent to the tenant. This may result in a change in the amount of compensation, by recalculating the support, which will be communicated to the landlord for subsequent payment, with retroactive effect to the time of the update.
The amount of compensation awarded is exempt from personal income tax and social security contributions.
The support ends when the rental contract comes to an end and the rent is no longer subject to compensation, or if the right to compensation lapses due to the death of the landlord without a successor entitled to maintain the support.
If the property is transferred to another person, in the event of the landlord's death, the right to compensation is maintained, subject to the new landlord's request to maintain this support, no later than 60 days after the original landlord's death.
In what other situations can the support end?
This rent compensation may be terminated if the landlord fails to comply with his obligations regarding access to and maintenance of the compensation, specifically by failing to provide legally valid evidence requested by the IHRU within the time limits established for this purpose.
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