OE2024: Impacto no Mercado Imobiliário e Habitação - André Ganhão
Written by André Ganhão
11 de December, 2023

OE2024: What are the main changes and the impact on the real estate market and housing?

The State Budget for 2024 (OE2024) brings with it a series of tax changes that affect the real estate market and housing. The measures proposed in OE2024 include changes to the Municipal Property Tax (IMI) and the Municipal Tax on Onerous Property Transfers (IMT), among others. In this article, I will analyze the main changes proposed in OE2024 and their impact on the real estate market and housing.

Most significant tax changes for Real Estate

Let’s start with an overview of the main tax changes proposed in OE2024 that affect, directly or indirectly, the real estate market and housing:

  • Firstly, we can highlight, from now on, the change in the rule that provides for an exemption from IMI for urban buildings constructed, expanded, improved or acquired for consideration, when intended for rental for housing, now only applying when the rental whether for permanent housing of the tenant.
  • The State Budget also provides for the creation of an IMI exemption for properties subject to a residential rental contract, for the duration of the respective contract, when this was concluded before the entry into force of the Urban Lease Regime.
  • With regard to tax incentives, the State Budget includes housing incentives for workers and fixing installments on housing credit. These changes, in particular, have a significant impact on the real estate market.

Impact of OE2024 on the Real Estate Market and Housing

The tax changes proposed in OE2024 have a significant impact on the real estate market. For example:

  • The change in the IMI standard provided for in the diploma could have a negative impact on the rental market, as owners may choose to sell their properties instead of renting them, which could lead to a decrease in the supply of housing for lease.
  • The creation of an IMI exemption for properties subject to residential rental contracts can have a positive impact on the rental market, as it can encourage owners to keep their properties on the rental market.
  • Fixing installments on housing loans could make it easier for Portuguese families to buy a house, which could lead to an increase in demand for housing.
  • Workforce housing tax incentives can encourage the construction of more workforce housing, which can help alleviate housing shortages in some areas.

In short, the legislative changes and new features that OE2024 brought were minimal. However, from the change in the IMI standard, to tax incentives for housing, their applicability in the Real Estate Market, can have both negative and positive impacts.

I hope this article was useful to you! If you are having difficulties, or need to clarify any questions, contact me! By choosing me as your real estate consultant, you are choosing to work with a professional committed to meeting your specific needs, and ensuring a smooth and satisfactory experience. Don’t forget, my success is reflected in your satisfaction. See you soon…