Portugal State Budget 2024: The Future of the NHR Tax Regime and More
The Portuguese government recently released its proposed state budget for 2024. The budget includes a number of measures that are relevant to the real estate market, including changes to the Non-Habitual Resident (NHR) tax regime and new investments in housing.
NHR Tax Regime
The NHR tax regime is a popular program that allows foreign nationals to benefit from a number of tax advantages, including a 10-year exemption from income tax on most foreign-sourced income. The government has proposed a number of changes to the NHR regime, including:
New Investments in Housing
The government has also proposed a number of new investments in housing, including:
Impact on the Real Estate Market
The proposed changes to the NHR tax regime are likely to have a significant impact on the real estate market in Portugal. The new requirement that NHRs live in Portugal for at least 183 days per year is likely to discourage some foreign nationals from buying property in Portugal. The new taxes on Portuguese-source pension income and capital gains from the sale of real estate are also likely to make it less attractive for foreign nationals to buy property in Portugal.
The new investments in housing are likely to have a positive impact on the real estate market. The financial assistance program for first-time home buyers is likely to boost demand for housing. The renovation program is likely to improve the quality of existing housing stock. The new affordable housing program is likely to help to address the shortage of affordable housing in Portugal.
Overall, the Portuguese state budget for 2024 is likely to have a mixed impact on the real estate market. The changes to the NHR tax regime are likely to discourage some foreign nationals from buying property in Portugal, but the new investments in housing are likely to boost demand for housing.
What does this mean for you?
If you are a foreign national considering buying property in Portugal, it is important to be aware of the proposed changes to the NHR tax regime. The new requirements and taxes may make it less attractive for you to buy property in Portugal.
If you are a first-time home buyer, you may be eligible for financial assistance from the government. You may also be able to purchase a renovated or newly built affordable housing unit.
If you are a real estate investor, you should carefully consider the impact of the proposed changes to the NHR tax regime on your business. You should also monitor the implementation of the new investments in housing.
Conclusion
The Portuguese state budget for 2024 is likely to have a significant impact on the real estate market. Foreign nationals should carefully consider the proposed changes to the NHR tax regime before buying property in Portugal. First-time home buyers and real estate investors should also monitor the implementation of the new investments in housing.
Carolina VilarMeet Carolina, a skilled realtor with over 5 years of experience in the real estate industry. Carolina has always had a keen interest in real estate and has spent years honing her skills and knowledge to become an expert in her field. Carolina's unwavering commitment to providing exceptional service to her clients has helped build a strong reputation and a loyal client base.
