The Agenda of Portugal's New Government

What will change in Local lodging?

Under the previous administration, the introduction of the "mais habitação" package ushered in a series of measures that garnered mixed reviews. Among these was the imposition of certain regulations concerning local lodging, notably the imposition of the Special Contribution to Local Accommodation (CEAL), currently fixed at 15% of the property's value. The new government aims to abolish the CEAL, along with lifting the restrictions imposed on licences.

Immigration policies

While the restructuring of the immigration agency by the previous government has been executed, the current administration seeks to further enhance its operations. The aim is to ensure a swift and responsive service catering to the needs of immigrants in Portugal. Portugal has been proactive in enhancing the efficiency of its immigration infrastructure and policies. For those considering residency in Portugal, Belion Partners stands ready to provide the necessary assistance.

IRS: The Personal Income Tax

This new government aims to reduce the tax burden on the Portuguese population by lowering the IRS bracket to the eighth level.



Corporate Income Tax (IRC) reductions

A pivotal commitment of this administration lies in the reduction of the prevailing corporate tax rate from the current 21% to 15%. Should this initiative gain traction, it will undoubtedly pique the interest of prospective investors looking to capitalize on opportunities in Portugal.

What will change for the young workers?

The new government is poised to introduce a series of tax reforms aimed at empowering young professionals, particularly in their pursuit to acquire their first homes, addressing Portugal's housing crisis. These initiatives seek to ease the financial burden on young individuals.

Specifically, Montenegro proposes exempting young professionals from both the IMT (Real Estate Transfer Tax) and the Stamp Tax. Additionally, the government plans to implement a public guaranteed mechanism, facilitating bank financing for young professionals looking to purchase their first homes.



Combating the house crisis

In this regard, while detailed measures remain somewhat scarce, the new government aims to bolster demand for residential leasing, foster stability in the real estate market, provide assistance to vulnerable tenants, facilitate young individuals in purchasing their first homes, and revoke outdated policies.

The measures proposed by the Democratic Alliance were a key part of their campaign promises. These measures are now a priority on the government's legislative agenda, but they still need to be approved in parliament. We are closely monitoring these developments and will keep our clients informed of any political changes that may affect their affairs and interests in Portugal.