The XXI Government has recognized, within the framework of its political priorities, the importance of housing and rehabilitation in order to improve the quality of life of the
In order to fight the lack of availability of real estate, mainly in areas of the country where
there is greater difficulty in accessing housing, a new law came into force, giving the
possibility to the municipalities to increase significantly the rate of the property tax for
vacant premises located in “urban pressure zones”, that consist in areas where the
demand is much greater than the supply or in areas where people's financial capacity is
well below the market values.
Under the Portuguese legislation, it is already stipulated in the Property Tax Code an
increasing taxation for vacant premises for more than an year, increasing annually the
current rates of the IMI Tax, that vary between 0.3% and 0.45%, up to the triple.
For the vacant premises located in “urban pressure zones”, the municipalities can
increase, from the second year that the property is vacant, up to six times the current
rate of the IMI Tax and after that, 10% for consequent years, up to the maximum of
twelve times the current tax rate.
In conclusion, the Government felt the necessity to create a complementary instrument
that was made available to the municipalities in order to increase housing supply and
regulate the real estate market, by penalizing the non-availability of existing properties.
Lisbon, 24th May 2019
By Denisa Burlacu, Legal Executive at EDGE International Lawyers
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