Affordable Rental Program comes into effect on July 1

On a voluntary basis, landlords / landlords will benefit from a total exemption from taxes on "property income resulting from leases or sublease under the Affordable Lease Program" in Personal Income Tax (IRS) and Corporate Income Tax (IRC), as long as the rent is less than 20% of market prices and tenants do not have to bear an effort rate of more than 35%.

 

 Increase housing supply for permanent or temporary residence

 

According to the diploma, approved by the Council of Ministers on 14 February and promulgated by the President of the Republic on 3 May, this housing policy program aims to "increase the accessibility of housing by households, increase the supply of leasehold housing at reduced prices, strengthen security and stability in rental housing, and promote a better balance between the rental sector and the housing market itself. "

In addition, the Affordable Rental Program aims to "provide answers to the needs of housing mobility, for family, professional or study reasons, and mobility for inland territories, and to improve the utilization of the existing building stock."

Managed by the Institute for Housing and Urban Rehabilitation (IHRU), this program establishes that lease agreements "may have the purpose of" permanent residence "or" temporary residence of students of higher education ".

 

"Lease agreements under the Accessible Rental Program have a minimum term of five years, renewable for a period stipulated between the parties," reads in the Government's diploma, stating that if the contract has the purpose of temporary residence of students of higher education, the lease term may be shorter than that established, but establishing "for a minimum of nine months".

As requirements, the program determines that "the specific rent price limit applicable to a dwelling corresponds to 80% of the reference value of the rent price of that dwelling", considering factors such as area, quality of accommodation, energy certification, location and value median of incomes per square meter, released by the National Statistical Institute (INE).

Lease agreements to be concluded under the Affordable Rental Program, the monthly rental price must correspond to "an effort rate that is between 15% and 35% of the monthly average household income" and the type of accommodation must have a minimum occupation depending on the size of the housing unit.

 

Source:

Lusa / DI