Real Estate Investors Say Portugal Needs More Homes, Not Fewer Tax Breaks for Foreigners
- Portugal plans to end its non-habitual resident regime in 2024
- Premier Costa says regime is unfair, helps inflate home prices
As home prices soared in cities like Lisbon, the government earlier this year approved an end to the golden visa program for foreign property buyers, as well as a limit on rent increases.
Photographer: Goncalo Fonseca/BloombergSome of Portugal’s biggest real estate investors and developers say the government’s plan to stop offering tax breaks to certain foreigners who move to the country may hurt investment and won’t fix the housing crisis, which needs to be addressed with an increased supply of homes.
Prime Minister Antonio Costa said late on Monday that the so-called non-habitual resident regime will end next year for new residents, which can also include Portuguese citizens who have been living abroad. The program has attracted thousands of foreign homebuyers by offering a flat tax rate of 20% on their income, or a 10% tax rate on pensions during 10 years.