aggravation of AIMI will lead to "inevitable" increase in rental prices – Jornal Econômico

aggravation of AIMI will lead to "inevitable" increase in rental prices - Jornal Econômico

The Lisbon Association of Owners (ALP) estimates as "irresponsible" the worsening of the Additional Tax to IMI, with the creation of a new step of 1.5% for global real estate assets over two million euros. A measure that the government will have to integrate into the next State Budget, after the PS has retreated and prepared to give a green light to the proposals of the Left Block and PCP that aim to aggravate the current rate of 1% that applies to the a global tax asset value that exceeds one million euros. The owners warn that the AIMI "caused a hurricane of instability to owners and instantly impacted house prices."

For ALP, which represents 10 thousand owners nationwide, this is a measure with "a marginal fiscal impact" on public accounts, recalling that the AIMI "caused a hurricane of instability to the owners and instantly impacted on house prices ".

According to the accounts of the PS and the leftist parties that support the Government in Parliament, estimates are advanced for the new AIMI level: 25 million per year. An amount that results from the increase in the tax that will cover anyone with real estate assets of over two million euros, will increase the amount to be transferred to the Social Security Financial Stabilization Fund, argues the PS.

According to the association led by Menezes Leitão, this estimate "only reveals that the government remains blind and subjugated to the parliamentary agreement it signed with PCP and Bloque de Esquerda, refusing to predict the dramatic consequences that will affect the generality of the Portuguese as a result of a further increase in taxes on wealth. "- As a consequence ALP stresses here an" inevitable "increase in the price of rents and a" sharp brake "on investment in urban rehabilitation.

Referring to the "very serious" housing crisis underway, ALP says in a statement that it does not understand how the Socialist Government continues to be "hostage to merely ideological pressures, insisting on a formula that was the key to the problem of the overwhelming majority of the Portuguese. " For the APL concerned are the obstacles to its access to the rental market, and also to the market for the purchase and sale of housing.

"Effectively, this tax, created in 2016 and dubbed 'Imposto Mortágua', nickname of the member of the Left Bloc who fervently assumed its authorship and application, caused a hurricane of instability to the owners and instantly reverberated into house prices "Concludes ALP.

AIMI only falls in third of the 222 thousand owners estimated by the Government

For the ALP, this tax was "negligently" designed, pointing out that of the 211,690 owners who, due to government accounts, should be subject to this tax – which, it should be remembered, only related to housing and construction land – only one third (or 62,115) were actually taxed, guaranteeing revenue to contribute to the Social Security Financial Stabilization Fund, of only 50 million euros compared to the 130 million budgeted.

"The damage to the real estate market and the confidence of homeowners and investors have outweighed this fiscal tightening. The price that the Portuguese pay more for housing today is also higher than this purely and exclusively ideological tax against property, "points out the association led by Menezes Leitão who says he does not understand how the government can" insist on the same disastrous formula, waiting a different or miraculous result. "

"ALP also notes that the" contraption "is naively waiting for real estate owners, who have been a priority target for the fiscal rampage of this Government since the first State Budget presented, to see the taxation to which its assets are subject and, in response, lower the prices of their properties, "he added in the statement.

According to the ALP, the Government continues to ignore the fact that, he says, "continuously harassing property owners is voting to the failure of any measures they may propose to relaunch the Housing market in Portugal." It recalls here that these measures are included in the legislative package of the New Generation of Government Housing Policies, presented last April as a major reform and that the

Revoke AIMI – or 'Mortágua Tax' – in OE 2019 was one of the proposals presented in September by the ALP to the Government and to all the Parliamentary Groups. "It is a measure that restores fiscal justice and normality in the housing market, at a time when there is an unprecedented escalation of housing prices," the association argues.

The PCP and the Left Block reached an agreement with the Government to create a new 1.5% rate on real estate held by natural persons, with a total value of more than two million euros.

It should be recalled that the PCP and the BE decided to bring their proposed amendments to the EO / 19: the Communists advocated the creation of a new rate of 1.5% for real estate assets above 1.5 million euros, while Block wanted a rate of 2% for properties with a tax net worth over two million euros.

The additional to IMI was created in 2017 by proposal of the Left Block, focusing on individuals who hold real estate assets above 600 thousand euros. Between this amount and one million euros, a rate of 0,7% is applied. Above this value the rate rises to 1%. With the approval of the new PCP and BE proposal, the 1% rate will be applied to real estate worth between one and two million euros, an amount above which leftist parties want to apply a rate of 1.5 %.

The additional to IMI is also owed by companies that currently pay 0.4% of the total tax value of all the properties they own. In this case, the rate remains unchanged.

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