Portuguese real estate sector is currently turned against the government and against the bad signals it sends to foreign investors. This is the consequence of the possible modification of the rules for awarding golden visas and NHR status. These tax incentives are under the radar of many European countries which see them as unfair competition. Today, Luis Lima, the president of APEMIP, the Association of Professionals and Real Estate Companies of Portugal, sounds the alarm and indicates that the planned changes are driving investors away. Lisbob, the expatriate assistant to Portugal, tells you all about Luis Lima’s statement.
Article translated from Idealista.pt
« It’s a crime against the country ! » : Changes to Golden Visas and NHR status scare off investors, explains APEMIP
"Acting to curb demand is a crime against the country," warns Luís Lima, leader of the association of mediators.
One of the themes currently characterizing the Portuguese real estate sector is the possibility that the state budget for 2020 (OE2020) includes modifications in the program for issuing golden visas and the tax regime for non-habitual residents (RNH) .
The assumption is that the Portuguese government will require 10% of the IRS from foreign retirees wishing to join the NHR status, with a minimum tax of 7,500 euros per year. This is "bad news for the real estate sector," say real estate agents.
“Giving in to expressions of dissatisfaction from other European countries about our program seems absurd to me, especially when in the same scenario we have countries like Spain, Ireland or Italy, with very similar mechanisms, which will certainly end up absorbing investment which, with these measures, will no longer enter the country. "
“The housing problem in Portugal is not the result of foreign investment, but rather the decades of ineffectiveness of successive governments”
"It is scandalous that we stop investments within the framework of these types of programs which (...) place Portugal on the international road of the real estate investment", declared Luís Lima, president of the Association of the professionals and of real estate companies in Portugal (APEMIP).
According to him, "the housing problem in Portugal is not the result of foreign investment, but rather the decades of ineffectiveness of successive governments who are never felt concerned by the implementation of a real housing policy".
"Now that the problem has broken out and its impact is undeniable, it is important that effective measures be taken to increase supply, not to curb existing demand. The sign given abroad is that the country no longer needs investment, which is not true” adds Luís Lima
He emphasizes that "it is only by increasing supply that market problems can be solved. On the other hand, acting to curb demand is a crime against the country, the consequences of which are not properly assessed” he concludes
