Portugal’s new government tears into AL (short-term lettings) restrictions

Centre-right executive takes unpicking of Socialist policies to new level

Portugal’s precariously-placed centre-right government is intent on unpicking Socialist policies ostensibly designed to help tackle the housing crisis. Gone will be practically all the restrictions on AL (short-term lettings) brought in under the controversial Mais Habitação programme.

Negocios online reports that the government has announced the end of the ban on issuing new licences; the end of the ‘special contribution’ (CEAL) payable for AL in certain areas – as well as the end of the rule that prohibited the transmission of licences (meaning AL properties can change hands in future as such: the licence does not stop with the owner who originally took it out).

Indeed, Luís Montenegro’s new executive “has gone further than it indicated it would in its electoral programme”, says the online.

With so much political acrimony flying, these specific changes have (this far) seemingly escaped the criticism of the left-wing opposition.

Prime minister Luís Montenegro’s reasoning is that the government needs “to give confidence and stability to those who invest in Portugal, also in the real estate and tourism sector”.

As negocios explains, “the Mais Habitação package suspended the issuing of new registrations of local accommodation establishments “in the form of flats and lodging establishments integrated in an autonomous fraction of a building” (meaning villas were excluded) throughout the national territory, with the exception of inland territories identified by ordinance”.

None of these changes are automatic, however. The law will need changing (and that is where some of the next political battles will no doubt play out). But the ‘special contribution’ tax was due to starting being paid this year, in June – thus it is unlikely ever to be implemented, says negocios’ text.

natasha.donn@portugalresident.com

Natasha Donn
Natasha Donn

Journalist for the Portugal Resident.

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