Draft law targets short-term residential lettings in Portugal

Property investors in Portugal offering property on short term lets are being targeted by draft legislation currently being debated in parliament, the Mais Habitação – or More Housing – programme.

Owners of residential properties listed on AirBnB and similar platforms may be required to pay an extraordinary tax contribution according to Paulo Núncio, partner in Lisbon-headquartered law firm Morais Leitão.

“That is definitely not good news for investors,” he commented. He also highlighted additional bad news for these owners who may also be required to pay a higher level of property taxes.

However, the possibilities are not all negative for residential investors. The bill currently being debated in parliament would also grant tax incentives and some tax exemptions to investors in order to promote the development of new buildings for long-term lettings.

Additionally, the bill includes tax incentives for the implementation of an affordable rental housing program.

“I think this is good news for investors, so let’s see uh what’s going to happen in Parliament,” Leitão told Real Asset Insight.

“Let’s see which law will come into Force but, for the time being, unfortunately I have mixed feelings,” he said.