Source: Adobe Stock Author: Redaction Measure may boost the construction sector VAT on construction may fall from 23% to 6% by March 2026, according to the Minister for Infrastructure and Housing, Miguel Pinto Luz. The minister explained that the legislative process should begin immediately after the conclusion of the debate on the 2026 State Budget. The aim of the measure is to boost the housing sector and promote new constructions at more affordable prices. The proposal is being prepared together with the Ministry of Finance and will be submitted to parliamentary review in the coming months. The Government considers that the reduction of VAT on construction is essential to balance the housing market, allowing lower building costs and stimulating projects aimed at sale and rental. The impact is expected to be felt gradually, as new projects are approved and move forward to the construction phase. Expected impact and implementation timeline According to the Ministry of Finance, the most visible effect of the VAT reduction on construction will only be seen in 2027. This is due to the natural gap between project approval, licensing by municipal councils, and the actual start of works. The new reduced rate should apply to housing constructions for sale up to €648,000 and to rental properties with rents of up to €2,300 per month. This measure is part of the “Building Portugal – Rental and Simplification” programme, which aims to increase housing supply and make the market more accessible to families. The special VAT regime for construction is expected to remain in force until 2029, helping to stimulate private investment, generate employment in the sector, and reduce the final cost of housing. The Government also expects the tax incentive to promote urban rehabilitation and the balanced development of cities and regions across the country. With the reduction of VAT on construction, a new cycle of dynamism is expected in the real estate sector. The measure may benefit both construction companies and individuals seeking to invest in new or renovated housing.
Source: Adobe Stock Author: Redaction The IMT Jovem regime allowing up to 30 days after issuance provides a solution to prevent minor delays from invalidating the right to the tax benefit. Currently, the IMT benefit for young people up to 35 years old requires that the deed for the purchase and sale of the first own and permanent home be completed before the buyer turns 36. However, everyday situations can delay the signing of the deed, meaning that even a single day can result in the loss of this important exemption or tax reduction. Factors that may cause such delays include issues with property delivery, delays in the banking process, pending municipal documents, or personal situations such as illness. To address this specific problem, notaries have proposed that the IMT Jovem tax benefit be maintained for those who requested the settlement by the age of 35, provided that the deed is executed within 30 days of the issuance of the tax payment slips. This measure would give buyers a margin to complete the formalities without losing the incentive, avoiding the need for legal exceptions, which can be a complex and litigious process. The proposal retains the current eligibility rules: young people up to 35 years old who purchase their first own home benefit, provided the property does not exceed certain value limits (up to €316,772 for full exemption). Above this value, there is a partial exemption up to €633,453, with tax payable only on the difference. The initiative also aims to minimise the risk of legal disputes related to the application of IMT Jovem, ensuring greater legal certainty for buyers and fairer access to the benefit. Key aspects of the IMT Jovem within 30 days: The IMT Jovem benefit applies to young people up to 35 years old acquiring their first own and permanent home. The proposal provides that the right to exemption remains even if the deed is executed up to 30 days after the issuance of the IMT payment slips. This period accommodates normal delays in the purchase process, including bureaucratic issues, property delivery, and personal unforeseen events. No member of the household may own or have usufruct of another property. The property must be occupied as the main residence for at least six years. The proposal aims to reduce legal disputes and the difficulty buyers face in meeting exact deadlines that may be beyond their control. The measure is scheduled for discussion in the new 2026 State Budget proposal. Guaranteeing the IMT Jovem benefit within 30 days demonstrates concern for adapting legislation to the practical realities of property acquisition, promoting greater fairness and facilitating homeownership for a generation facing various financial and bureaucratic challenges.
Source: Adobe Stock Author: Redaction Housing prices and sales values in Portugal reached new historical highs between April and June 2025. In the second quarter, the property market recorded a 17.2% increase in house prices compared to the same period last year. This rapid growth reflects both limited supply and sustained high demand, with the number of transactions rising 15.5% compared to Q2 2024. Housing Price Trends The housing price index has continued to show successive increases since 2013, now reaching the highest level ever recorded by the National Statistics Institute (INE). Compared to the previous quarter, the variation was 4.7%, consolidating the trend of residential property appreciation. Existing homes saw the largest increase, up 18.3%, while new house prices grew by 14.5%. These figures indicate a highly dynamic market, with the most pronounced growth seen in existing properties. The average annual rate of change in housing prices also set a record, standing at 13.8%. This result confirms a generalised environment of appreciation, with greater pressure in highly sought-after urban centres such as Lisbon, Porto, and the Algarve, but also reaching unprecedented levels in regions like Madeira and Alentejo. Volume of House Sales The Portuguese property market experienced remarkable activity in Q2 2025, with record sales volumes and a significant increase in total transaction value. Key figures from this period illustrating the sector’s growing dynamism include: Approximately 42,889 properties were transacted, a 15.5% increase compared to Q2 2024. The total sales value exceeded €10.3 billion, establishing a new quarterly record. The majority of properties sold were existing homes, representing over 80% of the total. New homes also showed growth, with 8,310 units sold, up 10.9% from the previous year. The strong sales momentum was driven primarily by domestic demand, which rose 17.7% in transaction numbers. Foreign buyers accounted for a smaller share, purchasing 2,107 properties, a decrease of 14.5%. Buyer Profile and Demand Dynamics Most sales were made by buyers with tax residency in Portugal, responsible for around 40,000 transactions – a four-year high and a 17.7% annual increase. This pace highlights the strengthening of domestic demand, emphasising the role of Portuguese households in the sector’s performance. Only 2,107 homes were purchased by foreign tax residents, representing a 14.5% decline in this market segment. Domestic demand benefits from government support, such as IMT exemptions for young buyers and reinforced public guarantees, combined with stable interest rates that facilitate first-time home purchases. The return of family groups to the market, after years of restraint, is rebalancing sector dynamics and concentrating most property investment among resident buyers. Regional Impacts and Available Supply Lisbon leads the market with average prices above €381,000 per property, followed by the Algarve and Madeira, where average values also approach €300,000. In Alentejo, prices rose 12%, reaching an average of €123,000, remaining the most affordable option. The supply of homes for sale continues to decline, down 26% from the 2020 peak. The scarcity of available properties is a major driver of rising prices, worsening the difficulties for families to access suitable housing and stimulating demand in suburban and inland areas. Market Outlook The Portuguese property sector remains on an upward trajectory, driven by limited supply, strong domestic demand, and state support for home purchases. It is estimated that, as long as imbalances between supply and demand persist, housing prices and sales values will continue to rise, directly affecting household budgets and market attractiveness for domestic and foreign investors. However, to ensure stability and affordability, it is crucial to accelerate the construction of new homes and renovate the existing housing stock. Public and private strategies need to align to correct distortions, prevent speculative bubbles, and promote fair access to housing.
Source: Adobe Stock Author: Redaction Increasing the tax burden on vacant houses is the new strategy defined by Entroncamento City Council to respond to the lack of housing and rising prices affecting families in the municipality. The decision, approved in a municipal executive meeting, allows for significant increases in the Municipal Property Tax (IMI) on vacant, degraded properties or undeveloped urban land located in areas of housing pressure. The creation of this housing pressure zone, now incorporated into the revised Municipal Master Plan (PDM), enables municipalities to adopt tax mechanisms that penalise owners who keep properties closed or in ruins for years. The aim is not only to raise revenue, but above all to encourage these properties to enter the market, helping balance supply and demand. How the tax penalty works With this measure, properties deemed vacant or degraded may see their IMI rate multiplied up to ten times the base value set by law. In subsequent years, this increase may be progressive, reaching a maximum of twenty times the normal rate. The revenue obtained will be applied to municipal housing policies, reinforcing programmes aimed at facilitating access to home ownership or rental. According to data from the National Statistics Institute, Entroncamento had around 10,900 family dwellings in 2021. Of these, nearly a thousand remained empty, and even after accounting for legal exceptions — such as second homes, health situations or emigration — it is estimated that around 500 could be immediately brought back to the market. This is the target population the municipality seeks to reach by deciding to increase the tax burden on vacant houses. Expected impacts on the housing market The municipality believes that implementing this measure could help revitalise the urban centre, bringing abandoned buildings back into active use. Vacant houses not only reduce the housing supply but also degrade the image of the urban space. Many of the properties in question are located in central areas of Entroncamento, classified in the PDM as type 1 and 2 residential areas, where a large number of dwellings are empty. By increasing the tax burden on vacant houses, an incentive is also created for owners to intervene in degraded buildings. Placing these houses on the market or renting them out becomes a more advantageous option than keeping properties unused and subject to successive penalties. Support and criticism The decision was approved with majority support, including votes from independent councillors. Supporters of the measure argue that it is a fundamental step in addressing the housing crisis felt across the country and also present in Entroncamento. They highlight that the city has entire streets with buildings in ruins, which undermines urban development and quality of life. On the other hand, the opposition points out that the law governing this type of intervention can generate injustices and application flaws. Critics warn of the possibility that renovated properties with low water or electricity consumption may be classified as vacant. In addition, some councillors note that the State and public companies also own abandoned buildings that remain outside the practical scope of the measure. Despite the disagreements, the proposal was approved and will apply for a period of five years, during which its effects on the housing market and municipal revenue will be assessed. Challenges ahead Increasing the tax burden on vacant houses should not be seen as an isolated measure, but as part of a broader strategy of urban rehabilitation and improved housing conditions. Success will depend not only on penalisation, but also on the municipality’s ability to provide alternatives: rehabilitation support programmes, incentives for affordable renting and greater coordination with national housing policies. Local officials recognise that the challenge will be to ensure a fair balance between penalisation and incentive, making sure that the revenue generated effectively translates into more housing opportunities for the population. If accompanied by complementary measures, the IMI surcharge could become an effective tool in combating speculation and encouraging full use of properties. The decision to increase the tax burden on vacant houses in Entroncamento aims to turn a problem — abandoned or ruined properties — into an opportunity for urban regeneration and affordable housing, taking an important step in tackling the local housing crisis.
Source: Adobe Stock Author: Redaction The IMT exemption is one of the main tax incentives for young people up to the age of 35 who purchase their first permanent home. This measure, which may also cover exemption from Stamp Duty, aims to support the acquisition of a first home and reduce the initial tax burden. To benefit from this exemption, the buyer must not own another residential property at the time of purchase, nor in the three previous years, and must not be considered a dependent for IRS purposes. The IMT exemption applies in full to properties up to the 4th bracket of the tax table, currently corresponding to €324,058. When the value of the property is between €324,058 and €648,022, the exemption is partial, with a rate of 8% applied only to the difference. This regime seeks to ease the financial burden associated with buying a home at a time when property market prices continue to demand a significant effort from younger buyers. General rules of the IMT exemption The law states that, in order to maintain the benefit of the IMT exemption, the property acquired must remain as permanent residence for a minimum period of six years. If the property is used for another purpose within this time, the tax benefit lapses and the buyer is obliged to repay the tax. Among the situations that would normally lead to the loss of the exemption are: the sale of the property before six years have elapsed; the use of the property for rental or another purpose other than the buyer’s permanent residence; its use for professional or commercial purposes. Despite these rules, the law also establishes exceptions that allow the exemption to be maintained even in cases of early sale of the property. Exceptions that maintain the IMT exemption One of the most relevant points of the legislation concerns precisely the sale of the property. Although, in theory, selling before six years would constitute grounds for expiry, the Tax Authority clarifies that sale is, in itself, an exception. In other words, the sale does not oblige repayment of the tax, even if it takes place before the legal period. In addition to sale, there are other situations that allow the IMT exemption to be maintained, namely: changes in the household, such as an increase in the number of dependants; a change of workplace to a distance greater than 100 kilometres from the purchased home. These exceptions were created to recognise the reality of young buyers, who may face personal or professional changes that force them to move house before the six years established by law. Impact and importance of the IMT exemption Maintaining the IMT exemption in the event of a property sale brings greater security and confidence to young people wishing to buy a home. It allows future decisions, such as moving to another city or the need for a larger property, not to be conditioned by the fear of losing the tax benefit. This incentive plays an important role in access to housing, reducing the costs at the time of purchase and making the market more accessible to those taking their first steps in building assets. With clear rules and well-defined exceptions, the IMT exemption continues to be a relevant instrument of support for young buyers in Portugal.
Source: Adobe Stock Author: Redaction Recent evolution of the Euribor Rate The Euribor Rate once again recorded distinct variations in its different reference maturities. This Monday, the three-month rate rose to 2.033% and the 12-month rate stood at 2.183%, both above the previous session’s figures. Meanwhile, the six-month Euribor Rate, the most used in Portugal for variable-rate mortgage contracts, fell slightly to 2.101%. These movements confirm the trend of adjustments according to market expectations and the monetary policy conducted by the European Central Bank (ECB). The relevance of the Euribor Rate for Portuguese households is clear, especially since January 2024, when the six-month term became the main reference for housing contracts. According to recent data from the Bank of Portugal, around 38% of the loan stock is indexed to this maturity, while the 12- and three-month terms account for approximately 32% and 25%, respectively. Any change in the Euribor Rate therefore has a direct impact on monthly repayments, influencing the budget of thousands of families. Impact on mortgage credit Monthly averages confirm the trend of gradual increases. In August, the average three-month Euribor Rate stood at 2.021%, after a rise of 0.075 percentage points. The six-month rate increased to 2.084%, up 0.029 points, and the 12-month rate rose 0.035 points to reach 2.114%. Although the variations may seem modest, their cumulative effect over time represents a considerable increase in the total cost of credit. The behaviour of the Euribor Rate is closely linked to ECB decisions. After eight consecutive cuts in the key rates since June 2024, the institution chose to keep monetary policy unchanged in the last two meetings. This pause has been interpreted by analysts as a sign of caution, given the Eurozone’s economic data, which show signs of slowdown but also persistent inflationary pressures in certain sectors. For consumers, the evolution of the Euribor Rate is closely monitored, as it defines the base to which banks add spreads in credit contracts. Even a small rise can mean dozens of euros more in the monthly repayment. On the other hand, the drop at six months provided temporary relief for those with loans indexed to this term. However, the overall trend still does not point to consistent reductions in the short term. Future outlook for the Euribor Rate It is important to recall that the Euribor Rate results from the average of the rates applied by 19 major banks in the Eurozone, which daily report the conditions at which they would be willing to lend money to each other in the interbank market. This calculation, carried out transparently, reflects market confidence and expectations regarding the evolution of monetary policy and the European economy. The future of the Euribor Rate will largely depend on the next ECB meeting, scheduled for the end of October in Florence. Until then, markets will remain attentive to economic indicators, inflation and the growth of the European economy, which may dictate new guidance for key rates. If the monetary authority chooses to maintain the pause, the rates may stabilise near current levels. Otherwise, new cuts could be reflected in more significant declines in the Euribor Rate. In summary, the recent behaviour of the Euribor Rate shows a scenario of moderate volatility, with shorter and longer maturities following different paths. For Portuguese mortgage holders, this reality calls for heightened attention and careful financial planning. Despite the drop in the six-month term, the increases in the other maturities highlight that the Euribor Rate remains a decisive factor for the cost of debt and the management of household budgets.
Source: Adobe Stock Author: Redaction The issue of increasing IMI on vacant buildings has returned to the political agenda with the proposal approved by Porto City Council. The executive argues that the current process is too complex and calls on the Government to carry out an evaluation that leads to the simplification and strengthening of this fiscal measure. The objective is clear: to penalise vacant properties, bring life back to the urban fabric and contribute to the population’s quality of life. Why the increase in IMI is important The Municipal Property Tax (IMI) is paid annually by all property owners, but when it comes to vacant properties, those in areas of urban pressure or considered to be in a state of disrepair, the law allows municipalities to apply higher rates. Thus, the increase in IMI on vacant buildings has precisely the function of combating speculation and encouraging rehabilitation, preventing urban centres from being occupied by abandoned properties. However, the practical experience of municipalities shows that the implementation of the measure faces significant obstacles. Many of the processes are drawn out due to exceptions provided for in the law, difficulties in enforcement and the possibility of legal challenges by property owners. Problems identified by municipalities Porto City Council, like other municipalities, emphasises that there are several procedural difficulties. Among the main ones: The difficulty of proving unequivocally that a property is vacant; The legal exceptions that allow owners to avoid the increase through various justifications; The excessive processing time required to apply the penalty; The absence of digital mechanisms for cross-checking information between public bodies. These obstacles slow down municipal action and reduce the impact of the measure, even in situations where the existence of abandoned buildings in the city centre is evident. Effectiveness in run-down buildings Despite the difficulties, the municipality highlights that the application of the increase in IMI on vacant buildings has had greater results in the case of run-down properties. In these, there is a direct link between the state of the building and risks to public health and safety. In addition, neighbours and tenants of adjoining buildings often report situations, increasing the likelihood of inspection and the effectiveness of the penalty. For this reason, the proposal approved in Porto underlines the importance of strengthening this strategy, increasing penalties on run-down properties. The measure, in addition to tackling the inaction of some owners, also serves as a tool of pressure to ensure regular maintenance and rehabilitation works. A national problem The discussion is not limited to Porto. Municipalities across the country have expressed similar concerns about the difficulty of implementing the increase in IMI on vacant buildings. Mayors from different parties stress that the law has been in place for two decades and, paradoxically, the application process has become increasingly complicated. This complexity generates frustration not only in local authorities but also in the population. The presence of abandoned buildings in the heart of cities undermines urban attractiveness, increases insecurity and deteriorates the image of public space. Repercussions on housing policy The issue is particularly relevant at a time when Portugal is facing a housing crisis marked by a lack of available homes and rising prices. The increase in IMI on vacant buildings could, if applied systematically, free up thousands of currently unused properties for the market. This fiscal pressure has the potential to encourage owners to renovate or rent properties, contributing to an increase in housing supply. Porto City Council wants the Government to take a more active role, simplifying rules, creating uniform criteria across the country and ensuring mechanisms that allow penalties to be applied quickly and effectively. Future prospects The proposal approved in Porto was unanimously supported by all parties, revealing political consensus on the need to review this process. The next step will depend on the national debate and the central government’s ability to respond to local demands. The future of the increase in IMI on vacant buildings lies in finding a balance that allows speculation to be penalised and urban recovery to be encouraged, without creating endless bureaucracy or excessive exceptions that nullify the impact of this fiscal measure. On the horizon is the possibility of a simpler, more effective and fairer legal framework for all, where municipalities can act quickly and taxpayers have clear rules. For the city of Porto, and for many others in Portugal, this transformation could make all the difference in the fight for urban rehabilitation and against the abandonment of historic centres.
Source: Adobe Stock Author: Redaction Tax payments in September involve fulfilling several obligations with the Tax Authority and Social Security. Both companies and individuals must stay organised to meet deadlines covering VAT, IRS, IRC, AIMI, IUC and Stamp Duty. This month concentrates communications, periodic returns and payments which, if not met within the defined deadlines, may result in fines and late payment interest. Tax payments: September fiscal calendar Tax payments in September are spread throughout the month, with dates covering mandatory declarations, income reporting and tax settlement. 5 September By this date, invoices issued in the previous month must be electronically reported. This obligation applies to individuals and legal entities with headquarters or permanent establishments in Portugal carrying out VAT-taxable operations. 10 September Submission of the Monthly Remuneration Statement by employers to the Tax Authority and Social Security. This statement includes income paid, applied tax withholdings and mandatory social protection contributions. 15 September Deadline for the Intrastat Declaration, required for taxable persons whose traded amounts exceed the limits set by Statistics Portugal, corresponding to intra-European trade operations. 19 September Mandatory communication to the Bank of Portugal regarding external operations and positions for the previous month. 20 September By this date, submission of the declaration relating to Temporary Solidarity Contributions for companies in the energy and food distribution sectors. 22 September One of the most relevant dates for September tax payments, with several obligations: Submission of the periodic VAT return, whether under the monthly or quarterly scheme. Submission and payment of the monthly Stamp Duty return. Payment of monthly Social Security contributions. IRS Category B advance payment. Submission and settlement of IRS and IRC withheld at source on income paid in the previous month. 25 September Deadline for the payment of VAT under both monthly and quarterly schemes. 30 September The last day of the month brings several important September tax payment deadlines: Submission of the Model 30 Declaration regarding income paid to non-residents in July. Advance payment and additional advance payment of IRC. Request for refund of VAT incurred abroad, provided the amount is equal to or greater than €50. Payment of the Additional Municipal Property Tax (AIMI). Payment of the Vehicle Circulation Tax (IUC) for vehicles with licence plates registered in September. Organisation in tax payments Tax payments in September require planning to avoid delays. With so many dates and different taxes involved, it is advisable to use an updated fiscal calendar or seek accounting support. Tax compliance reduces the risk of penalties and contributes to balanced financial management. Moreover, strict control of tax payments makes it possible to anticipate amounts due, avoiding surprises in companies’ cash flow and easing the burden for individuals. Tax payments in September cover VAT, IRS, IRC, AIMI, IUC and other ancillary obligations such as periodic returns and tax communications. Keeping all deadlines under control is essential to ensure that both businesses and households meet their responsibilities to the Tax Authority and Social Security without fail.
Source: Adobe Stock Author: Redaction The Municipal Property Tax (IMI) is an annual obligation for all property owners in Portugal, including houses, apartments, garages, land, shops and other urban and rural spaces. The amount is calculated by the Tax Authority (AT) based on the taxable patrimonial value (VPT) of each property. The IMI instalment refers to how this tax is divided throughout the year according to the total amount due. When to pay the IMI instalment Payment deadlines vary according to the total tax amount. In 2025, the rules follow three main scenarios: Up to €100 : single payment by 31 May (transferred to June this year due to technical delays); Between €100 and €500 : two instalments, one by 31 May (or June in 2025) and the second by 30 September; Above €500 : three instalments, due 31 May (or June), 31 August and 30 November. For those with a higher total, the second IMI instalment is therefore scheduled for August. Consequences of late payment Failure to pay an IMI instalment automatically triggers penalties. Interest is applied from the day after the deadline. Depending on the delay and amount owed, the AT may also impose fines under the General Tax Offences Regime. Non-payment can eventually lead to tax enforcement proceedings, further penalising the owner. Paying the IMI in full Although the tax is divided into instalments, taxpayers can choose to pay the full amount when first notified by the AT. The letter or digital notification sent in May (or June, in 2025) includes not only the payment references for the first instalment but also the full amount for those who prefer to settle the debt in one payment. This option offers convenience and helps avoid future oversights. IMI exemptions: who can benefit Not all property owners are required to pay IMI. The law provides for permanent or temporary exemptions. Permanent exemption Applies to households with a gross annual income up to 2.3 times the IAS value (€16,824.50 in 2025), provided the property is the main residence and the VPT does not exceed €67,260.20. This exemption is automatically granted by the AT. Temporary exemption Valid for new properties with a VPT of up to €125,000, used as the household’s fiscal residence. Annual income must not exceed €153,000, and the exemption lasts up to three years, extendable by two more years depending on municipal decision. It is important to note that this temporary exemption can only be requested twice in a taxpayer’s lifetime and does not apply to families with outstanding debts to the State. Importance of meeting IMI instalment deadlines Complying with IMI deadlines is essential to avoid legal and financial problems. The tax also plays a key role in funding local authorities, which use IMI revenues to invest in public works, maintain local infrastructure, provide social services, and manage public spaces. Each payment contributes directly to improvements in the community where the property is located. Tips to avoid missed payments Use direct debit: ensures automatic payment on the correct dates. Enable electronic notifications: receive alerts via the Finance Portal or app. Set personal reminders: mark key IMI dates in a digital or physical calendar. Opt for full payment: for simplicity and security, paying the full amount in May/June is practical. Conclusion: a manageable but unavoidable tax Paying the IMI instalment is an annual responsibility requiring attention from all property owners in Portugal. While it represents a significant expense for many families, meeting deadlines prevents penalties and ensures financial peace of mind. With instalment options, exemptions, and the possibility of full payment, the process can be managed efficiently. More than a tax, IMI is also a tool that supports local communities, financing projects and services that directly benefit residents and property owners.
Source: Adobe Stock Author: Redaction The rental sector is going through one of the most challenging periods in recent decades, particularly in the university segment. While the number of higher education students continues to grow, the public supply of beds does not even cover 5% of demand. In this context, pressure on the private market increases, where many landlords are willing to rent to students, provided they are given conditions that make this decision balanced and sustainable. The availability of property owners A recent survey confirmed that a large proportion of property owners recognise the potential of this specific market. More than half state they are open to the idea of renting out properties to university students, as long as there are clear rules, contractual flexibility and mechanisms that reduce the risk of default. For landlords, renting to students can be a profitable way of generating income from property, but only if accompanied by incentives and legal security. Barriers pointed out by landlords Despite their openness, many property owners remain hesitant due to practical and financial issues. Among the main concerns are: The risk of damage to properties due to turnover and intensive use; The complexity of managing short contracts, often lasting only nine or ten months; The lack of guarantees in cases of contractual breaches; The need to ensure frequent maintenance and provide basic equipment. Without effective mechanisms in place, renting to students is seen by some landlords as a high risk compared to long-term contracts. The role of tax incentives A central point in the debate is the creation of tax incentives to stimulate the market. Many property owners indicate that reducing taxes, particularly in IRS and IMI, would be the most decisive factor in making their properties available to students. These measures could balance risks and make the student rental market more attractive, as shorter contracts tend to generate greater turnover and additional costs. Thus, renting to students would no longer be seen merely as an extra effort, but as a real opportunity to balance income for property owners and affordable housing for young people. Institutional programmes and certification Beyond taxation, many landlords are open to joining institutional programmes that guarantee standard contracts, minimum habitability criteria and even voluntary certification for student rentals. These initiatives not only provide greater confidence to students and their families, but also create a quality seal capable of enhancing property value in the market. At the same time, they ensure that renting to students becomes a positive experience for both parties. Deposits and additional guarantees Another proposed measure to boost participation in the student market is to increase the value of deposits, in order to cover potential damage or unforeseen expenses. For property owners, this would strengthen protection, especially in homes rented to groups of students, where turnover and usage intensity are greater. With reinforced guarantee mechanisms, landlords would gain greater confidence in making their properties available. Social impact and urgent need The impact of the shortage of student accommodation in Portugal is clear. At present, there are around half a million higher education students, but fewer than 15,000 public beds. This imbalance puts pressure on families and students, who face high rents and difficulties in finding suitable housing solutions. Given the limitations of public supply, mobilising the private sector is increasingly crucial. Encouraging property owners to rent to students is therefore an essential way to mitigate the housing crisis in the academic sector. A solution that can benefit everyone Creating conditions for more property owners to feel comfortable investing in this segment can generate benefits for all parties involved: Students, who would gain access to more affordable and predictable housing; Families, who would have greater confidence in rental conditions and security; Property owners, who would better capitalise on their assets with stability guarantees; Society as a whole, which would achieve a healthier balance in the urban rental market. Conclusion: turning availability into solutions The Portuguese housing market faces serious challenges, but the solution may lie in practical measures that encourage landlords to rent to students. Tax reductions, safer contracts, voluntary certification systems and stronger guarantees are tools with the potential to unlock thousands of properties. The current scenario shows that landlords are willing to take part in the solution — what remains is to create the right conditions so that this availability translates into real results.
Source: Adobe Stock Author: Redaction The Stamp Duty exemption is a tax benefit aimed at reducing the costs associated with certain acts and contracts, especially credit contracts for the acquisition of own and permanent housing. Stamp Duty applies to various operations, but in the case of interest on loans for buying a house there is a special regime: those who take out credit for their main residence are exempt from paying the 4% rate on the interest, generating significant savings over time. Who Benefits from This Measure? Currently, the exemption applies to loans for own and permanent housing, covering acquisition, construction, reconstruction or improvement. This benefit is more relevant in long-term credits or with high amounts. In 2023, according to data from the Technical Unit for Tax and Customs Assessment (U-Tax), 1.64 million taxpayers benefited from this exemption, corresponding to a fiscal expense of 140.9 million euros for the State. The Proposed Change in 2025 U-Tax proposed that the Stamp Duty exemption no longer cover loans for secondary housing. The aim is to focus this benefit on social purposes, especially for the purchase of the first home. Second homes, often intended for leisure, investment or rental, would start to pay 4% Stamp Duty on the interest. Expected Impact of the Measure In 2023, 57,676 taxpayers benefited from the exemption in the case of second homes, representing 8.3 million euros of fiscal expense. With the change, this amount would return to the State coffers, increasing public revenue. For buyers, it would mean an increase in the effective cost of financing for secondary housing, potentially influencing purchase and investment decisions. Arguments For and Against In favour: • Corrects distortions in the real estate market. • Discourages speculative investments in second homes. • Focuses fiscal resources on priority housing support. Against: • May negatively affect the construction sector. • Impacts tourist and rural areas dependent on this type of investment. • Reduces attractiveness for non-resident investors. What to Expect in the Future The future of the Stamp Duty exemption will depend on approval by the Government and the Assembly of the Republic. If the proposal is approved, loans for first homes will remain exempt, but those for second homes will have an increased fiscal cost. For those planning to buy a house, it is essential to follow these changes and assess the impact on financial planning.
Source: Adobe Stock Author: Redaction Buying a home is a very important moment and can seem complicated if you’ve never been through the process. Among the various stages, the public deed of property is fundamental, as it is the official legal recognition of the purchase. What is the public deed of property? The public deed of property is an official document that proves that one person is selling a home and another is buying it. To complete this deed, the buyer, the seller and a professional called a notary (or a legal representative) must be present. This document is signed in the presence of the notary, who ensures that everything is correct and complies with the law. Once the public deed of property is signed, the buyer becomes the legal owner of the property. Only from that moment is the purchase fully valid and secure. How does the public deed process work when buying a home? Before the deed, there is usually a promissory contract of purchase and sale (CPCV), where both parties express their intention to buy and sell. Then comes the mortgage phase, if you need a loan to buy the home. The mortgage is a type of bank loan linked to the property, which is only granted once the public deed has been signed. On the day of the public deed, the process goes as follows: the buyer, the seller and the notary meet at an authorised location to formalise the transaction. If there is a mortgage, a bank representative will also be present to sign the loan agreement (a loan with mortgage). Only at that point does the bank release the money to the seller. Documents required for the public deed of property To complete the deed, you must gather several documents, such as: Valid ID document (Citizen Card or Passport) Property tax booklet Land registry certificate proving the current owner Property usage licence Energy certificate These documents confirm that the property can be sold and that there are no legal issues. Registration after the public deed After signing the public deed of property, you must carry out the land registry. This step is essential to ensure the property is officially in your name. The registration can be done in person at the Land Registry Office, at Casa Pronta counters, or even online. Without this registration, other people could still try to claim ownership of the property, so this step protects your rights as the new owner. Costs involved in the public deed Buying a home involves costs beyond the price of the property. For the public deed, you must consider: Notary fees or fees charged by the entity where the deed is signed Municipal Property Transfer Tax (IMT) Stamp Duty Land registry fees These costs vary depending on the property’s value and location. It’s important to get well informed beforehand to avoid surprises. Frequently Asked Questions 1) Is the public deed mandatory to buy a home? Yes. For the purchase to be valid and legal, the public deed of property is mandatory in Portugal. 2) Can I sign the deed without using a mortgage? Yes. The deed takes place whether the purchase is made in cash or with a mortgage. 3) What is a mortgage? It is a loan granted by the bank to help you buy a home. The bank only releases the money after you sign the public deed. 4) What happens if I don’t register the property after the deed? Without registration, the property is not officially in your name, which can lead to legal issues and allow others to claim ownership. 5) How long does the entire public deed process take? Usually, the deed is scheduled after the CPCV is completed and the mortgage is approved. The process can vary, but it usually takes a few weeks until final registration.
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