The 15% extraordinary contribution will no longer be applicable as of December 31, 2023. The cost of the increased rent can be subtracted by displaced workers from their income from the property.
The special 15% payment on local accommodations and the provision preventing IMI reductions on these properties were repealed by the government this Thursday in the Council of Ministers, after legislative authorisation from Parliament. The law will go into effect retroactively on the 31st of December 2023.
Amaro, the Minister of the Presidency, stated at the briefing for the Council of Ministers that the Government had approved "a decree authorised by Parliament that implements the law that extinguishes the extraordinary contribution on Local Accommodation and creates rules at the IRS," without providing much more information.
The same diploma enables workers who travel more than 100 kilometres from their place of residence to deduct the cost of the new rent from the property income obtained related to your home of origin. It also facilitates the exemption from IRS of capital gains generated by the sale of a house and reinvested in the purchase of permanent housing.
After the Assembly of the Republic granted approval for the legislative authorisation request two months earlier, the Executive of Luís Montenegro was able to proceed with the repeal of several measures from the Mais Housing package of the previous António Costa Government. The left, including PS, Bloco, PCP, and Livre, voted against it, while the right, including PAN, PSD, Chega, IL, and CDS, supported the request.
With effect from 31st of December 2023, the exceptional rate of 15% on Local Accommodation (AL) and the ageing coefficient applied to these properties—which keeps the buildings' ages from being taken into account when reducing the IMI—were removed. Retroactivity assurances Consequently, the contribution is not paid by the proprietors of these companies.
It's important to keep in mind that the fee was supposed to be paid by the 15th of June. However, the current Executive decided to delay payment of the contribution for 120 days, or four months, until October 15th, in order to give itself time to approve the regime's repeal, which has now taken place. AL owners won't be required to pay the fee for the 2023 taxable event this year as the approved diploma becomes effective on 31st of December 2023, i.e., it pertains to the previous fiscal year.
Still in effect, the law states that properties of a residential nature, particularly those situated in coastal areas (where population density is higher), are subject to an extraordinary contribution on AL (CEAL) of 15% at a fixed rate, which is determined by a number of factors. This cost is waived for lodging in one's own permanent residence as long as the operation lasts no more than 120 days annually.
Still in force, the law stipulates that residential properties are subject to an extraordinary contribution on AL (CEAL) of 15% at a predetermined rate that is determined by several variables. This is especially true for properties located in coastal areas, where population density is higher. If the procedure takes no longer than 120 days per year, there is no charge for housing in one's own permanent home.
The Council of Ministers' resolution also makes it easier for capital gains from the sale of the house to be exempt from income tax when they are used to finance the purchase of a new, permanent residence.
Up until now, the owner had to reside in the property for at least two years in order to qualify for the tax advantage, following the pact's requirements. The new diploma reduces this need to a year.
However, this one-year period is eliminated if the makeup of the family changes as a result of marriage, a stable relationship ending, an increase in the number of dependents, or any combination of these events. Put differently, in this scenario, an owner who has lived in a home for a month may be exempt from paying taxes on the capital gains made on the sale of that property, provided that the gain is used to purchase a new residence. and long-lasting.
On the other hand, barred taxpayers from benefiting from the capital gains exemption if they had already utilised the policy over the preceding three years. In view of the government-approved decree-law, this condition also applies.
Workers who are laid off may subtract their new income costs from their property income.
The Executive also passed legislation allowing a worker who is relocated more than 100 kilometres from their place of residence to deduct the cost of renting their new residence from the gains they made from renting their previous one.
In addition to the required distance, there are other requirements that must be fulfilled in order to achieve this: both rental contracts must be registered on the Tax and Customs Authority's Finance Portal; the property that generates property income must be intended for the worker or their family's permanent residence for at least a year prior to being rented.
Comments