The Portuguese government announced a temporary reduction of VAT to 6% for the construction and rehabilitation of homes intended for permanent residence. This initiative, part of the PSD/CDS-PP government's program led by Luís Montenegro, aims to reduce housing costs and stimulate the construction sector. Local authorities will be compensated for any revenue loss from this reduction.

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In addition to lowering VAT, the government plans to reduce or eliminate urbanization and building fees, further decreasing the financial burden on individuals and families. These measures are intended to encourage more housing developments and renovations, increasing the housing stock.

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The government is also promoting public-private partnerships for large-scale housing projects, focusing on student accommodation and affordable housing. By involving the private sector, the government seeks to accelerate these developments and address critical housing needs more effectively.

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The expansion of the Porta 65 housing support program is another key element of the government's strategy. This program offers financial assistance to young people and families to help them afford rental housing. While the details of the expansion are not fully disclosed, it is expected to increase the number of beneficiaries and the level of support.

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Minister Pedro Duarte presented the housing program to the Assembly, where it will undergo parliamentary review. Until a decision is reached, the government will operate with limited powers, focusing on essential functions and implementing approved policies. These comprehensive measures reflect the government's commitment to tackling the housing crisis and making housing more accessible and affordable.

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For more details, refer to the full article here (Forbes Portugal/Lusa).

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