Lisbon, Oct. 2, 2025 (Lusa) - The Portuguese minister for infrastructure and housing has given assurances that the country will continue to have balanced accounts with the recently approved measures for housing, which he considered to be "the biggest fiscal shock" in this area.
"I can give you a guarantee right now: the accounts will continue to be in order. I know that some people will be saddened by this information, but the Portuguese will be happy [...] we will continue to have balanced accounts in Portugal," Miguel Pinto Luz said tonight in an interview with state broadcaster RTP on Wednesday evening.
The minister did not reveal the impact that the recently approved measures for the housing sector will have on the state budget, referring to the macroeconomic and fiscal policy scenario that the minister of finance, Joaquim Miranda Sarmento, will present this month.
Last week, the government approved a set of measures that include reducing VAT to 6% on the construction of homes up to €648,000, increasing income tax deductions for tenants from €700 to €900 in 2026 and to €1,000 in 2027, a reduction in income tax from 25% to 10% for landlords with rents up to €2,300, which is the ceiling for what the government considers a "moderate" rent, and an increase in property transfer tax (IMT) for non-residents.
Miguel Pinto Luz accused the opposition Socialist Party (PS) and the opposition on the left of being "angry with the government for lowering taxes" and considered that thinking that the market will respond to the tax ceiling of €2,300 with rents increasing up to that figure is "wrong reasoning".
As for the increase in IMT for non-residents, which excludes emigrants, the minister said that the figure has not yet been defined, but is being calculated in order to maintain the necessary “balance” for the accounts to be correct.
"It will be enough to help the balance, but it will not jeopardise the market that has been generated, because we have to continue to attract this investment," he stressed, pointing out that this measure will cover "a very small fringe of those who invest in Portugal".
Asked about the discussions on the state budget for 2026, Pinto Luz considered that "the new political scenario has given more stability to the parliament", therefore anticipating "that the process will be different" from that of a year ago.
"I hope there will be responsibility [from all parties], because Portugal has had too much instability in recent years and that has not been good for the Portuguese people," he stressed.
MPE/AYLS // AYLS
Lusa
