Portuguese gov’t announces package for affordable housing

The Portuguese government announced a special package of measures on Thursday to increase affordable housing for local residents amidst rising prices. Prime Minister Antonio Costa outlined the “More Housing” program that will set out some key measures such as increasing supply of properties for housing purposes, tapping renting prices, fighting real estate speculation and supporting families struggling with their mortgages.

One of the most significant measures announced by Costa was the end of the Golden Visas – a scheme set up in 2012 to grant foreign investors residency status if they made a significant investment in the country such as by acquiring real estate. Another measure that is set to open the debate with some property owners is the decision to not license new short term rentals as businesses– rural areas being the exception.

The government says this has affected the supply-demand market and wants to change the situation by taxing less for permanent rental contracts and more for short term options. Other measures include financial aid for families struggling with their mortgages and a scheme to attract owners with empty houses to rent them out to the state, which would then sublet them to families at an affordable price. According to Finance Minister Fernando Medina, the total investment in the package amounts 900 million euros.