Portugal's new Regime Simplified Affordable Rental regime (RSAA) came into effect on September 1, but its implementation has been delayed due to the absence of required regulations. The Association for Housing and Development in Portugal (AHDPP) warned that the regime cannot be applied without the publication of necessary ordinances. This has resulted in no new contracts being signed.
AHDPP stated that property owners are uncertain about the maximum rent they can charge, as this needs to be specified in the ordinance. Without this information, no new contracts can be classified as affordable. The association emphasized that this delay affects investors the government aims to attract, as the primary incentive of the new regime is the exemption from IRS and IRC taxes on affordable rental income.
The new regime is part of the government's "Construir Portugal" housing program, designed to replace the previous Program for Rental Support (PAA). Its goal is to increase the availability of affordable housing in a more simplified manner. Property owners participating in the program and charging rents not exceeding 80% of the regional median will be exempt from IRS or IRC taxes.
However, the maximum rent for each contract must be fixed by ordinance, taking into account factors such as housing type and energy certification. Until this ordinance is published, property owners are hesitant to enter into new contracts. AHDPP noted that this delay impacts not only property owners but also municipal rental programs, which depend on these limits to prepare their tender documents.
On September 15, the Secretary of State for Housing, Patrícia Gonçalves Costa, assured that the ordinance would be published "in the coming days." However, two weeks later, no further information was provided. The lack of regulations has resulted in a significant delay in the implementation of the new regime.
The delay has significant implications for families in need of affordable housing. AHDPP stressed that every day without the ordinance means that potential savings are not being passed on to families. The association urged the government to publish the ordinance as soon as possible to allow the new regime to take effect.
The RSAA aims to provide a more streamlined approach to affordable housing, but its success depends on the prompt publication of necessary regulations. Key stakeholders, including property owners and municipal authorities, are eagerly awaiting the ordinance to move forward with new contracts and provide affordable housing options to those in need.
Key points
- The new affordable rental regime in Portugal still lacks necessary regulations.
- The regime's implementation was set to start on September 1 but has been delayed.
- The delay affects investors, property owners, and families in need of affordable housing.
