The Portuguese Association of Real Estate Developers and Investors (APPII) called this Monday for “state direction” to approve the housing measures included in the State Budget proposal, praising the intention to reduce VAT on construction and rehabilitation.
“We believe that this Budget proposal brings confidence to the real estate market and takes the first steps to become a solution to the real estate crisis. that we live,” says the president of this association, Hugo Santos Ferreira, in a statement, highlighting that “there must be a sense of State so that the measures now registered are approved” and more homes can be put on the market.
In reaction to the State Budget proposal for 2025 (OE2025), APPII considers that the document takes “a step forward”, although “timid”, in resolving the real estate crisis, highlighting the modification of the VAT.
This is a legislative authorization, which must be used throughout 2025 (in case of approval of OE2025), so that the A reduced rate of VAT (6% on the continent) is applied to contracts for the construction or rehabilitation of residential properties.defined according to criteria established by the members of the Government responsible for the areas of Finance and Housing.
This authorization also establishes that construction or rehabilitation works, total or partial, of residential properties whose value exceeds the “limit compatible with the development of the Government’s social housing policies” are excluded from the application of the reduced VAT rate.
For APPII, which has been demanding a measure of these characteristics, Its completion could help put more homes on the market, for sale or rent.
The maintenance of support measures for younger people, such as IMT Jovem, is also applauded by the APPII, which states that they are already having “positive effects” on the market, allowing more young people to access their first home.
This association also deserves a positive note due to the Government’s intention to increase the public housing supply..
The maintenance of the measure that limits the increase in the rental value of new contracts to 2% is described as “negative”, and the APPII requests its elimination considering that it will increase the supply of housing on the market.
APPII further states that We must understand “what is the Government’s position regarding frozen rents prior to 1990”arguing that “it is important to solve this problem, safeguarding owners and tenants, but providing a solution to this problem that has been going on for more than a decade.”
OE2025. Landlords surprised by “return” to defrosting old rentals
In this analysis of OE2025, the association chaired by Hugo Santos Ferreira defends the introduction of new measures to simplify licensing.
APPII represents national and foreign real estate investment and promotion companies operating in Portugal and currently has 200 members, 50% of which are foreign companies, active in the national real estate sector.
Source: Observadora
