Source: Freepik Author: Redaction As indicated by the Tax and Customs Authority (AT), the IRS rate borne by landlords who do not choose to encompass the income at the time of filing the IRS statement becomes 25% , and includes all housing rents that have been received over 2023 in leases of less than five years. The new rate of 25% provided for in paragraph 2 of article 72 of the IRS Code will apply to all real estate income resulting from housing lease agreements received in 2023 , explains the AT. Provided for in the More Housing Law, the special rate on housing rents, before 28%, thus falls to 25% and only excludes rents that previously benefited from an IRS rate below 25%, maintaining the most favorable tax regime. Property income resulting from permanent housing leases for less than five years that already benefited from a lower IRS rate, shall keep this rate lower until the end of the contract or until its renewal, depending on what happens first , he concludes. On the other hand, the rate of non-residential rent is maintained at 28% , corresponding to the level that results from it when there is the inclusion of income. Continue reading, on this topic: Landlords who have not raised rents will have discount in the IRS
Source: Freepik Author: Redaction Announced at the same time as the rent brake applied in 2023, the compensation to landlords who did not change the value of rents in 2023 serves to mitigate the effects of the rise in inflation recorded so far , in practice being a discount on the value of income taxed in the IRS. This compensation mechanism can be used by owners who, by the rent brake standard implemented in 2023, have limited the update to 2% . This is compensation automatically applied by the Tax Authority (AT). In the case of a monthly rent of 500€ in a lease for a period of one year, renewable, the landlord could have increased to a maximum of 510€ in 2023, to instead of paying IRS on the amount of 6,120€, be taxed at 5,569.20€. However, it also applies to landlords who did not move the rent amounts, and in this example, the IRS will focus on € 5,460 instead of the previous € 6,000. These examples include gross values and do not include expenses that are to be deducted, such as rates, condominium charges, taxes such as IMI or works expenses in the rented fraction, to which the official source of the AT indicates: landlords who in 2023 did not make any increase in income benefit from the support coefficient provided that the other conditions are met. They add: the application of this coefficient is carried out by the TA automatically, based on the declaration in model 3 of 2023, in Annex F, Squares 4.1, 4.2, 4.3 and 5 (depending on the type of contract in question), as to whether the rents were or not, with a coefficient equal to or less than 1,02 . What are the conditions required to benefit from the compensation scheme? As stipulated, in order to benefit from the compensation mechanism, the rents due in 2023 in question must be paid and result from lease agreements in force before 1 January 2022 , duly communicated to the TA, and whose updating has not resulted in a value higher than the 2% limit stipulated by the Government. Calculated by the AT, this compensation should be calculated at the time of filing the IRS statement regarding last year’s income, which begins on April 1 and ends on June 30. Read also: IRS: learn how to deduct rental expenses , Salary cap for access to affordable rental increases and Security deposit is not considered taxable income at source of IRS
Source: Freepik Author: Redaction Expenditure on housing rents paid during 2023 can be deducted from this years IRS. To do this, it is crucial to ensure that all rent receipts are duly registered in e-Fatura . If the electronic receipts are not visible on the Finance Portal, there is no need to worry, as many of them were only available until 15 March. In e-Fatura, the information on electronic rent receipts may not be immediately visible in the tiles related to provisional IRS deductions or IRS deductible expenses. The Tax and Customs Authority (AT) explains that when you hover over the Housing and Real Estate tiles, you may see the message Electronic rent receipts not yet included. The lack of information on electronic rent receipts issued by the landlord in e-Fatura should not alarm taxpayers , since the information will be made available by the Finance Portal by 15 March of the year following the issue of the documents, as the AT explains. This information is crucial for tenants or those who lived in rented accommodation last year. House rents are tax deductible up to a maximum of 502 euros and can significantly influence the amount you pay or receive in your tax refund. Its important to note that with the State Budget for 2024, the limit for the deduction of rents in the IRS will increase from the current 502 euros to 600 euros, which will be applied to the IRS to be filed in 2025. Follow these and other topics in SUPERCASA Notícias
Source: Freepik Author: Redaction The municipality of Torres Vedras is going ahead with the launch of a public housing offer for two hundred homes to meet the needs of the population, in an estimated investment of 32 million euros , making changes to the Local Housing Strategy (ELH). The municipalitys main objective is to strengthen its response capacity in the field of housing , above all by increasing the number of people and households identified as being in economic and housing need. In order to achieve this goal, Torres Vedras will expand the responses according to the number of families who, while not meeting the eligibility criteria for the supported rent scheme, may also be experiencing difficulties with their housing costs. This acquisition has funding from the Lisbon district , but it also hopes to obtain funding from the 1st Right Program - Support Program for Access to Housing , as well as from the Recovery and Resilience Plan. Local Housing Strategy undergoes changes In order to be able to respond to the shortages, the municipality has approved changes to the Local Housing Strategy , updating it to include the launch of a public takeover bid, as well as extending the implementation period by 10 years , until 2035. Investment will also be increased, from 13.8 million euros to 60.5 million euros , and there will be greater flexibility in the responses and diversification of solutions for the housing sector. After the update, the municipality carried out a needs assessment and found more people in vulnerable situations , increasing the number from 808 to around 1,505 people, now including 561 families instead of the initial 282. As he announced, the number of families and people to be covered by the municipalitys help in finding housing solutions will also increase , responding through the 1st Right Program, which will then offer rent-controlled prices. These proposals will be submitted to the Torres Vedras Municipal Assembly, which will meet until the end of February to vote on them. The public tender notice will only be published in the Diário da República after approval. Find out more: Real estate funds increase focus on residential properties , More families opt for mixed rates on home loans
Source: Freepik Author: Redaction Complaints related to rental support have continued to increase on the Portal da Queixa , which reveals that there has been a greater number of complaints related to the Porta 65 Program , especially about approval times and delays in payments. According to the data released by the Portal, between January 2022 and February 16, 2024, the Porta 65 Program gave rise to 377 complaints, 89% of which were registered in 2023. Of the total, only 34.4% specifically mention the problems that led to the complaint. The main reasons given for the complaints relate mainly to the length of time it takes for the support to be approved, since the results of the program were only released last week. Other reasons include the delay in approval, which 78.1% of Portal users reported; refusal of support, which accounted for 12.5% of complaints, and delays in payments, which accounted for 9.4% of complaints. Also read: Wage ceiling for access to affordable rent increases and Special eviction procedure: find out the criteria
Source: Freepik Author: Redaction The Affordable Rental Program has new access conditions, and the Ordinance regulating applications was published in the Diário da República this Monday, February 19. One of the new features is the name, which is now the Rental Support Program , followed by the access conditions, which now include more families. In order to make rents compatible with salaries, the maximum ceiling for gross income eligible to apply for support has been increased , from €35,000 to €38,632, as of Tuesday, February 20. What are the new eligibility criteria? First of all, with the publication of the ordinance, and with the changes coming into force from February 20, the maximum annual income established increases depending on the composition of the household , with households made up of just one person being able to apply if their gross annual income does not exceed the limit of the 6th IRS bracket, which is less than €37,632. On the other hand, in a household made up of 2 people, it is eligible if the gross annual income is up to the limit of the 6th bracket or lower, up to €38,632 plus €10,000, i.e. €48,632. In a household with more than two people, the eligible gross annual income is up to the limit of the 6th IRS bracket or lower, up to €38,632 plus €10,000, plus €5,000 for each additional person. The ordinance thus provides for an increase in the maximum income value for the purposes of eligibility of housing households, seeking to consolidate the objective of promoting a supply of private rental housing at prices compatible with family incomes , as explained in the ordinance. Types will now be adapted to the size of households One of the many new features is also the concept of typology suited to each family which, according to the ordinance, replaces the previous concept of minimum occupancy of dwellings . It also adds that the type of housing may be higher than that provided for (...) in cases where the price of the monthly rent complies with the limits provided for the type suitable for the household. When accommodation is made available in the form of part of a dwelling, the minimum occupancy is one person per room , the decree clarifies. More topics like this: Lisbon kicks off rent support applications , Rent support: Tax authorities confirm payment to all beneficiaries
Source: Freepik Author: Redaction The special eviction procedure covers tenants with old-age social pension benefits, unemployment, social insertion income or a solidarity supplement for the elderly , classifying these taxpayers as people in a situation of lack of means , as defined in the criteria for assessing Ordinance no. 50/2024 published in the Diário da República last Thursday, February 15. Also published in the same context was the ordinance regulating the Tenant and Landlord Counter (BAS), which replaces the National Rental Counter. Thus, the ordinance defines the conditions for verifying the tenants lack of means within the scope of the special eviction procedure, with the BAS , the respective assessment procedure, as well as the referral to the competent public entities in order to guarantee a dignified housing response to these tenants and to ensure the appropriate social emergency responses. Thus, as stipulated in the regulation, the notification sent to the tenant of the special eviction procedure must include an indication of the public services they can contact if they have no alternative housing, namely the social assistance and monitoring service (SAAS) of the municipality where they live. There is also the possibility for the tenant to request the suspension and deferral of vacating the rented house. Other issues on the rental market: Security deposit is not considered taxable income for IRS purposes , Single-parent families no longer have a fixed rent and Support for landlords with old rents: how does it work?
Source: Freepik Author: Redaction The rental of property almost always presupposes the advance payment of a security deposit , which serves to safeguard contractual requirements, as a guarantee. It is negotiated between both parties and returned at the end of the contract if all the agreed criteria have been met. The deposit has been considered to be property income subject to IRS by the tax authorities, however, the arbitration court has now clarified that, in fact, this payment is not subject to IRS, as it is not considered to be truly income. The security deposit is not truly income, neither from a civil law perspective, nor from an economic perspective, since it does not truly form part of the assets of its beneficiary, the arbitration court clarifies. Therefore, even when it is paid when renting a house or commercial property, it is not covered by the IRS. This was the decision shared in a case brought by a landlord before the Administrative Arbitration Centre (CAAD) . In this particular case, a company had rented a rustic building, asked for a deposit and failed to include it in its personal income tax return, which led to an additional tax assessment by the tax authorities of more than 160,000 euros, plus compensatory interest totalling 21,000 euros, after the respective inspection. What was decided, following the arbitration courts decision in October last year, is that this landlord will recover the 180,000 euros , as it was a decision that the tax authorities did not appeal, despite the fact that the tax authorities understanding ends up contradicting the circular that has been circulated since 2018, which states that anyone who receives a deposit must pay IRS, even after the amount has been returned. If the deposit is returned, the amount can be considered an expense for the landlord for IRS purposes. Find out more: Are you going to be a tenant? Care to take before and after , Subletting rules: get to know them all and Compulsory insurance for landlords and tenants: find out more
Source: Freepik Author: Redaction Applications for the Municipal Subsidy for Affordable Rent (SMAA) opened this Friday , 9 February, promoted by Lisbon City Council to help displaced families and professionals earning a minimum income of 6,000 euros. Running until 9 March, households that meet the access criteria that well explain to you can apply. Recently, the income threshold eligible for the application was lowered by the municipality, allowing a wider range of beneficiaries to be covered , so that families who are renting a house in the capital or have signed a tenancy agreement can submit their applications for the municipal subsidy. To do so, all they have to do is fill in the form available online on the Habitar Lisboa Platform and submit it by 5pm on 9 March, taking into account the following eligibility criteria: The applicant must be over 18 , a national or foreign citizen with a valid residence permit; Hold a current residential lease contract or a promise to lease contract in the city of Lisbon , duly registered with the tax office; Have the entire household permanently resident and tax resident in the subsidised dwelling, as well as being in compliance with the same contract; Verify that the households tax burden is equal to or greater than 30 per cent of their income at the time of the application ; A minimum limit of 6,000 euros of the households total income , as well as a limit of 35,000 when there is only one person, or 45,000 euros when there are more than two people in the household, plus 5,000 euros per year for each additional dependent listed on the IRS tax return; The rented accommodation is located in Lisbon and the rent is within the specified limits. The amount of the subsidy to be awarded will be calculated on the basis of the monthly rent paid, the effort rate and the monthly income earned, as shown in the example: Contracted rent - Effort rate x Available monthly income = Support More people will be able to apply for the SMAA According to the municipality, one of the new features of the support programme was the widening of the universe of beneficiaries as a result of the reduction implemented in the minimum overall income limit for eligible families , which went from 9,870 euros to 6,000 euros. We lowered the amount of access to the Municipal Subsidy for Affordable Rent to allow people who previously didnt meet the criteria to access this programme to now be covered and benefit from monthly support in paying their rent, said Carlos Moedas, the mayor of Lisbon. On the other hand, Filipa Roseta, Councillor for Housing, explains the reason for the reduction in the minimum overall income limit, as well as the aim of the support, which is to respond to a significant fringe of the population, especially young people, the elderly and single-parent families , who are unable to apply for the municipal programmes PRA (Affordable Rent Programme) and SMAA, since they have an overall household income on their IRS tax bill that is lower than the minimum access limit provided for [. ...], currently 9,870 euros . The change comes into force in this new subsidy competition, which also extends the application of the extraordinary measures to all age groups over the age of 18 , unlike what was previously in force, only for young people up to the age of 35 . The measure is now more comprehensive and inclusive, and can reach more people, particularly pensioners with pensions below the minimum wage, who were previously left out, according to the housing councillor, who recalls that in 2023 the SMAA will support 1,000 families, having distributed 1.5 million euros in support for rent payments. Also read: Single-parent families no longer have a fixed rent , Are you going to be a tenant? What to look out for before and after
Source: Freepik Author: Redaction If youre looking for a house to rent, there are some important points to bear in mind when taking this step. See below the tips that SUPERCASA Notícias brings you. Filter your searches You can start by doing a search on property portals, where you can filter the search by various characteristics (we suggest two national ones: SUPERCASA and CASASAPO ) , to see what you like best and what matches what youre looking for: house? Flat? What type? Do you want the house already furnished or not? Rent Another important point, which you should take into account in your search, is: how much rent can you afford and are you willing to pay? Evaluate the impact this will have on your financial and family budget. Consider that the effort rate should not exceed 35 per cent. See if it really pays to pay a rent that is beyond your means. Location The area where you are going to rent a house is important, as you will have to see what is ideal for you: is it close to essential services (schools, work, supermarkets, hospitals)? Is it quiet, with nature or parks and gardens nearby, or is it in the city centre? If its far away, take other expenses into account, such as the fuel youll spend to get around, or the cost of a monthly transport pass. Visit the property To make sure you make the right choice, make an appointment to visit the various properties youre interested in . You can take the opportunity to ask the owner of the property or the real estate agent who is helping you for more information and some documents about the property, such as the owners identification, land registry and certificate, energy certificate, licence to use or fire risk insurance. Take advantage of the visit to analyse the property in detail, especially its condition, and clarify any doubts that may arise. Analyse and read the rental contract carefully As we mentioned above, before signing the contract, make sure you have copies of some official documents: Condominium regulations (if applicable); Identification of the owner; Land registry certificate; Caderneta predial; Licence to use; Energy certificate; Compulsory fire risk insurance; Make sure that the contract contains all the important information: Identification and details of the landlord and tenant; Amount of rent and method of payment; Authorisation to carry out work and identification of the person doing the work; Who pays the common expenses (stairs, lift, gardens, etc.) Identification of guarantor (if any); Whether or not you can have pets; Duration of the contract and time limit for cancellation; Annex to the contract with a list of goods and their condition; Date, time and place and signatures. Dont forget to also check the rent update regime, carefully review the contract and clarify any doubts you may have. Read more about: Renting a house: how to find a good tenant and Compulsory insurance for landlords and tenants: find out
Source: Freepik Author: Redaction The notice for IHRUs second Arrendar para Subarrendar competition went out on Monday, February 6, with new rules for single-parent families . This support, which aims to support rents and is aimed at the middle class, now goes hand in hand with changes to the IRS tax brackets, having announced an increase in the maximum income values defined in the eligibility criteria for support, allowing more candidates to apply for the lottery. According to the notice issued by the IHRU, single-parent families will no longer have a fixed rent, but will be able to pay a monthly fee that fluctuates according to their income , thus obtaining a lower rent compared to other applicants. The minimum rent is currently 287 euros per month, which corresponds to 355% of the national minimum wage , the same as the fixed amount paid by other applicants. So, in order to benefit single-parent families, the IHRU has created a range for calculating rents for these households, with a lower level compared to the price of rent for other applicants, who continue to pay the fixed monthly amount, regardless of their income. However, the amount of rent paid by single-parent families will be calculated without taking into account the number of dependents, instead considering the criterion of a household consisting of children or young people entitled to the family allowance and a single other person, of legal age, a relative or relative in a direct ascending line up to the 3rd degree or in a collateral line up to the 3rd degree, adopter, guardian or person to whom the child or young person is entrusted by judicial or administrative decision of entities or services legally competent for this purpose , according to what is mentioned in the notice of the competition. Gross annual income figures for applying to the program have gone up Previously, a family with an annual gross income of 35,000 euros, in the case of one person, could submit their application, something that has changed in the new call for applications, where only households with an annual income of 39,971 euros or less, in the case of one person, can apply. The amount increases in proportion to the number of people in the household. Thus, families with annual incomes up to the 6th IRS bracket are eligible, with priority given to households up to the age of 35, single-parent families or families with income shortfalls amounting to 20% of income in the previous three months or the same period last year. According to the rules in force, the monthly payment made by the IHRU to landlords is a maximum of 30% more than the general rent price limits , by type and municipality of location of the property, included in the Rental Support Program (PAA). The duration of these contracts cannot be less than 3 years. Discover more measures like this in SUPERCASA News
Source: Freepik Author: Redaction The various tenders for affordable housing under the Rental Support Program and the new Rent to Sublet Program opened yesterday, February 5, according to information provided to SUPERCASA Notícias by the Housing and Urban Rehabilitation Institute (IHRU). There are a total of 102 homes spread across 18 municipalities in the country , and the competitions, which are the responsibility of the IHRU, aim to award, by lottery, homes of types T1 to T5 , in the towns of Almada, Amadora, Aveiro, Entroncamento, Fafe, Figueira da Foz, Gondomar, Lisboa, Oeiras, Paredes, Ponte da Barca, Porto, Santiago do Cacém, Seixal, Setúbal, Sintra, Valongo and Vila Nova de Gaia. According to the information provided, the rental contracts are intended for permanent housing for households that do not have a maximum rent burden of more than 35%. The homes will therefore be raffled off to households who submit their applications by March 18 , and who must meet the eligibility requirements for the respective programs, as well as the conditions of each Call for Tenders. The application must be submitted on the Housing Portal. The IHRU adds that priority will be given to households aged up to 35, single-parent families or families with an income drop of more than 20% compared to the previous three months or the same period of the previous year. Read more about this in SUPERCASA News