Lisbon, Jan. 9, 2026 (Lusa) - The Portuguese government's draft bills on housing were approved at the first reading and vote on Friday in parliament with votes in favour from the PSD, CDS-PP and IL, and abstentions from Chega.
At issue are two proposals with legislative authorisations, one with tax relief measures to encourage renting and construction at moderate prices, and another with changes to licensing, urbanisation and urban regeneration.
Regarding the initiative containing tax measures, the PS, Livre PCP and BE voted against. Chega, PAN and JPP abstained.
Regarding the proposal to authorise the revision of the regime applicable to licensing of urban operations, and to amend the legal regime for urbanisation and construction, and the legal regime for urban regeneration, the PCP, Livre, PAN and BE voted against. The PS, Chega and JPP abstained.
All draft bills presented by the opposition parties were rejected.
Chega presented an initiative to reduce VAT on housing construction and another to exempt properties intended for permanent residence, with a taxable value of up to €350,000, from property tax.
Livre saw a bill defining maximum rent limits in residential lease agreements rejected, as well as another establishing inclusive zoning for a quota of public housing in urban development operations.
A bill by IL to reform construction and increase the supply of housing was also rejected.
The PS presented a bill aimed at strengthening access to permanent housing and combating property speculation, which goes directly to the committee stage, and was not voted on at the first reading after the bench submitted a request to that effect.
One of the legislative authorisations approved allows Luís Montenegro's government to amend the VAT Code, the IRS Code, the Tax Benefits Statute and the IMT Code, with the aim of promoting the supply of housing at lower prices.
Among the measures planned is a reduction in VAT from 23% to 6% on the construction of houses sold for up to €648,000 or rented for up to €2,300 per month, as well as a reduction in income tax to encourage owners to put their houses up for rent.
Another measure involves the application of 7.5% IMT (property transfer tax) if the buyers are non-resident citizens, but there are exceptions that allow the higher IMT to be avoided.
During today's debate on the legislative package, opposition parties on the left criticised the fact that the government is using €2,300 as a benchmark for "moderate" rent.
In response to the opposition, Minister of Finance Joaquim Miranda Sarmento stressed that the ceiling goes "up to €2,300", which means it covers rents of "€1,000, €1,200, €1,500, €1,700, €2,000".
The Minister of Infrastructure and Housing, Miguel Pinto Luz, acknowledged that the housing crisis cannot be resolved "from one day to the next", but he expressed his conviction that the new legislation will lower house prices and encourage renting.
The minister of finance said that the Government is preparing a third package of "legal improvement" measures to "increase supply" and stated that the package of measures is in force on a temporary basis, "so that they can be studied and evaluated at the end of this legislative term" in 2029, "and eventually corrected and improved".
Speeding up evictions, creating an emergency housing fund and resolving disputes over undivided inheritances involving property more quickly are some of the measures that Minister Pinto Luz has put forward to be launched shortly.
On Wednesday in parliament, Miranda Sarmento stated that the measures included in the package now presented will cost between €200 and €300 million, with the amount being "difficult to estimate" as it depends on the uptake to the planned measures.
PCT/AYLS // AYLS
Lusa
