PORTUGAL 1676585365833 1676585366123 1676585366123

Portugal tackles housing disaster by ending ‘Golden Visa’, banning new Airbnbs

Portugal introduced on Thursday a 900-million-euro bundle of measures to sort out a housing disaster, together with the tip of its controversial “Golden Visa” scheme and a ban on new licenses for Airbnbs and different short-term vacation leases.

Portugal is without doubt one of the poorest international locations in Western Europe. Greater than 50% of staff earned lower than 1,000 euros per 30 days final 12 months whereas rents and home costs have skyrocketed. In Lisbon alone, rents jumped 37% in 2022.

Low salaries, a red-hot property market, insurance policies encouraging rich foreigners to speculate and a tourism-dependent economic system has for years made it laborious for locals to lease or purchase, housing teams say. Portugal’s 8.3% inflation fee has exacerbated the issue.

Prime Minister Antonio Costa advised a information convention the disaster was now affecting all households, not simply probably the most weak.

It’s not clear when the measures, value a minimum of 900 million euros ($962.19 million), will come into impact. Costa mentioned some could be permitted subsequent month and others might be voted on by lawmakers.

A mechanism could be launched to manage lease will increase, he added, and the federal government will provide tax incentives to landlords who convert tourism properties into homes for locals to lease.

New licenses for tourism lodging, akin to Airbnbs, might be prohibited – besides in much less populated rural areas.

To deal with the housing scarcity, Costa mentioned the state would lease vacant homes direct from landlords for a interval of 5 years and put them on the rental market.

Portugal’s golden visa programme, which provides EU passports to non-EU nationals in return for investments together with in actual property and has been criticised for sending home costs and rents up, will finish, Costa mentioned.

The scheme attracted 6.8 billion euros in funding since its launch in 2012, with the majority of the cash going into actual property.

Housing teams mentioned the measures would imply little if the federal government continued to advertise different insurance policies to draw rich foreigners to Portugal, such because the “Digital Nomads Visa” launched in October, which provides foreigners with excessive month-to-month earnings from distant work to dwell and work from Portugal with out paying native taxes.

At a small housing protest in Lisbon, 23-year-old activist Andreia Galvao accused the federal government of failing to dwell as much as guarantees it made to handle the housing disaster up to now.

“The purpose was that by 2024 all Portuguese would have entry to high quality housing – it would not appear like that can occur,” she mentioned. “The state of affairs is dramatic.” ($1 = 0.9354 euros)

This story has been printed from a wire company feed with out modifications to the textual content.

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