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IRS rent deduction: tenants ask for ceiling of 820 euros


Tenants consider the measure presented by the Socialist Party (PS) to increase the deduction limit for collecting income tax costs to 600 euros to be "insufficient" and argue that the ceiling for next year should rise to the value of the Minimum Wage National already approved for 2024. António Machado, general secretary of the Lisbon Tenants Association, advocates that the deduction should increase from the current 502 euros to 820 euros. As part of the proposed changes to the State Budget (OE), the PS proposed an increase to 600 euros, 50 euros higher than that already admitted by the Government. OE 2024 is voted on on November 29th.


António Machado also claims that the deduction rate should increase from 15% to 20% of the rent, up to the maximum ceiling which, if the PS proposal is approved, will then rise to 600 euros. The measures proposed by the Lisbon Tenants Association are based on the conviction that, "in the vast majority of rental contracts, the tenants' effort rate is 40%". The PS argues that its proposal will allow holders of a rental contract for permanent housing to obtain an additional reduction of around 100 euros in IRS.


As far as tenants are concerned, the PS also put forward a proposal to reduce withholding tax by 40 euros. The measure targets taxpayers with monthly income of up to 2,700 euros, and its implementation depends on a declaration of will from employers. The objective of this measure is to "guarantee greater monthly liquidity for families to pay their rents", which have faced in the last two years the escalation of inflation and the increase in the price of access to housing.


Still to overcome the current problem of the lack of houses in the country, the PS defends the exemption from IRS and IRC on the sale of land for public construction, seeking to expand the tax measure already approved in Parliament aimed at the sale of properties.

In another sense, the PS submitted a proposal to change the regime for non-habitual residents (RNH), defending the maintenance of benefits until the end of 2024 for citizens who can prove that they were already planning to move to Portugal this year. The OE proposal presented by the government included a transitional regime, but limited access to the RNH to those who were registered with the Tax Authority by December 31st of this year, or met the conditions for registration by that date.


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Source: Diário de Noticias

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