President promotes IMI worsening for vacant buildings – The Economic Journal


The President of the Republic, Marcelo Rebelo de Sousa, on Sunday promulgated a worsening of the municipal property tax (IMI) for vacant buildings in zones of urban pressure, despite their effectiveness in raising reservations.

"Despite its reservations, in terms of weight and effectiveness, considering that the new regime derives from the State Budget Law for 2019 and that it mitigates its effects either by broadening the involvement of stakeholders or by recognizing a number of situations that hinder to its application, the President of the Republic promulgated the Government's decree that, in the use of the legislative authorization granted by article 287 of Law no. 71/2018, of December 31, aims at dealing with housing problems in pressure zones urbanism, "the presidency's website notes.

The Government's decree, approved by the Ministerial Council on February 14, establishes as areas of urban pressure "areas where demand is much greater than supply or in areas where people's financial capacity is well below market values" .

According to explained at the time the Minister of the Environment and Energy Transition, João Matos Fernandes, in the case of vacant buildings in areas of urban pressure, "municipalities can aggravate, as of the second year in which the property is vacant, up to six times more the current IMI and, after that, apply a further increase of 10% each year. "

On that day, three other diplomas on housing were approved by the Government, all now promulgated by the President of the Republic.

One of the diplomas amends the rules applicable to the subpoena for the execution of maintenance, rehabilitation or demolition works and their enforcement.

"Given that the last version of the diploma emphasized the alternative nature of the solutions and demanded proportionality in the choice between them, as well as the hearing of the owners, the President of the Republic promulgated the government's diploma that, using the legislative authorization granted by the article 287 of Law No. 71/2018, of December 31, "is mentioned in the note of the Presidency of the Republic.

According to the environment minister explained in February, the municipalities have "increased and faster power" to operate in buildings and in poor condition and if there is no reimbursement by the owners for the works, the municipality can "lease of forced form until being compensated of what is the value owed by the own works ".

"Assuming that this law does not affect the initiatives that the municipalities intend to develop in the same domain," Marcelo Rebelo de Sousa also promulgated the creation of the Affordable Rental Program.

Under this program, landlords will benefit from a total exemption from property income taxes, which applies to contracts of a minimum duration of five years, provided that the rent is less than 20% of market prices and the lessees do not have to withstand a stress rate of more than 35%.

The head of state also enacted the special lease insurance scheme with insurance for landlords in the event of non-compliance by tenants and insurance to support tenants in the event of a loss of income.



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