The deputies this Thursday approved several changes to the autonomous property income rate that mainly benefit contracts with a term of more than five years, lowering the cap rate from 28% to 25%.
The measures were approved only with the positive vote of the PS, the abstention of the PSD, Chega and Liberal Initiative and the negative vote of the PCP and Bloco de Esquerda.
This is the special rate levied on rental income, the maximum value of which is 28%, but which, in the current system, provided for discounts for each year of renewal of leases with a term of more than two years.
In the new draft, considered in the Mais Habitação program, whose specialty vote took place this Thursday, the special rate is reduced to 25%, which applies to leases with a term of less than five years.
For contracts with a duration equal to or longer than five years and less than 10 years, a reduction of 10 percentage points from the respective autonomous rate is applied, with a reduction of 2 percentage points for each extension of the same duration.
“Property income arising from leases for permanent housing with a term equal to or longer than 10 years and less than 20 years shall be subject to a reduction of 15 percentage points of the respective autonomous rate,” the bill refers.
In the case of a term of more than 20 years, as well as “income from property arising from contracts of right in rem for sustainable housing (DHD), in the part concerning the payment of the monthly benefit in cash, a reduction of 20 percentage points from the respective autonomous rate is applied”.
The interruption of contracts before the stipulated deadlines leads to the end of the tax break “with effect from the start of the contract or renewal”, with the landlord being requested to pay back the amount of the difference between what he paid and what he would have to pay without benefit plus compensatory interest.
Source: DN
