Rents will be discounted by 6.94% in 2024, the highest since 1994, with the increase partially offset by the strengthening of support for tenants and the portion of rents that the IRS can reduce.
Contrary to what happened in 2023, when the increase in rental prices was limited to 2%, in 2024 they may increase in line with the inflation indicator that serves as a reference for its update and which, according to the value calculated by the National Institute Statistics (INE), stands at 6.94%.
For some tenants, however, the increase may be even more pronounced, as the law allows the landlord to add to this value the value of the previous two years – if they have chosen not to update rents in 2022 and 2022.
In these cases, the 6.94% can therefore be added to the 2% allowed in 2023 and the 0.43% of the previous year. But it may also happen that there is no increase, because updating the rents is not mandatory and the landlord can choose not to do so.
According to rental legislation, the first update may be necessary one year after the entry into force of the contract, and the following year after the previous update, whereby the landlord must communicate the update of the coefficients in writing at least 30 days in advance and the new income resulting from this calculation results.
To alleviate tenants’ stress with this expected increase in 2024, rental support was extended by 4.94%. This involves an increase in the subsidy granted to families with an effort of more than 35% in paying the rent.
At the same time, the part of income that is deductible from the tax authorities and that helps reduce the bill for this tax will increase from the current 502 euros to 600 euros. Unlike the two previous situations, this will only have practical consequences in 2025, when the annual IRS return is filed.
In 2024, the so-called old rental prices (which will no longer be transferred to the New Urban Lease Regime – NRAU) will also be able to be updated based on the coefficient resulting from inflation, a solution that has been strongly criticized by real estate owners. associations..
The expected support for landlords of tenants under the so-called old rental regime, which should correspond to the difference between the rental price and the value that would result from the equivalent of a maximum of 1/15th of the inventory value of the property in question, will be provided by the next government are determined.
On the other hand, and with the aim of encouraging the entry of more homes into the residential rental market, the Mais Habitação program (which came into effect in October) reduced the special rate applicable to this type of income from 28% to 25%. for contracts with a term of up to five years, with more significant discounts, compared to the current model, for longer contracts.
Source: DN
