Portuguese Government Support for the Real Estate Sector: Incentives and Benefits for Owners and Investors

The property market in Portugal is driven not only by supply and demand, but also by a series of government supports and incentives aimed at encouraging development, urban rehabilitation and facilitating access to housing. These supports are key to promoting sustainable and balanced growth in the sector, benefiting both property owners and investors. In this article, we explore some of the main supports made available by the Portuguese government.

1. Incentive Programmes for Urban Rehabilitation

• Tax Benefits: Urban rehabilitation programmes offer significant tax incentives for the rehabilitation of old and dilapidated buildings. These benefits include reductions in Municipal Property Tax (IMI) and Municipal Property Transfer Tax (IMT), among others.
• Subsidies and Financing: In addition to tax benefits, subsidies and financing at preferential rates are available for rehabilitation work, helping to revitalise urban areas and preserve historical heritage.

2. Incentives for First Time Buyers

• Subsidised Credit: Specific programmes that offer subsidised credit to young people and families on lower incomes, facilitating access to buying a first home.
• Tax Exemptions and Reductions: Tax exemptions or reductions that are applied to the purchase of a first home, easing the initial financial burden for buyers.

3. Support for Energy Efficiency

• Financial Incentives: Support programmes that encourage the installation of renewable energy systems and energy efficiency improvements in buildings, reducing energy consumption and promoting sustainable practices.
• Subsidies for Building Works: Targeted subsidies that help owners finance energy efficiency improvement works, such as thermal insulation and window replacement.

4. Rental Support

• Rent Subsidies: For tenants with financial difficulties, rent subsidies are made available to ensure access to adequate housing.
• Incentives for Landlords: Tax benefits are offered to landlords who practise affordable rents, contributing to stability in the rental market.

5. Incentives for Property Investment

• Golden Visa and Special Regimes: Programmes such as the Golden Visa offer residence visas to foreign investors who purchase property in Portugal, boosting foreign investment in the property market.
• Tax Benefits: Tax exemptions and other benefits are granted to attract investment in property and tourism projects.

6. Property Regularisation and Legalisation

• Regularisation Programmes: Facilitating measures help regularise illegal or irregular constructions, providing legal certainty for property owners.
• Process Simplification: Initiatives aimed at simplifying property legalisation processes, reducing bureaucracy and facilitating regularisation.
  

Government support in the property sector plays a crucial role in the sustainable development and promotion of adequate housing in Portugal. These incentives not only directly benefit property owners and investors, but also contribute to economic growth and urban revitalisation.