No housing deal at São Bento, though two PS ideas live on into the budget fight
PS leader José Luís Carneiro left Thursday's meeting accusing Luís Montenegro of intransigence: the government refused to rewrite the rental law from scratch or scrap the €2,300 'moderate rent' tax break. It did signal openness on a capital-gains exemption for home sellers and higher purchase tax for non-resident buyers. Smaller parties go in on Friday.
There was no deal. Portugal’s opposition leader, José Luís Carneiro of the Socialist Party (PS), walked out of Thursday’s housing meeting with Prime Minister Luís Montenegro complaining of “intransigence”, and the governing AD coalition fired the same word straight back within hours.
Carneiro went in with five proposals the PS had laid out the day before. He came out with two still breathing.
What the government turned down
According to the Lusa account carried by DN, Montenegro rejected the Socialists’ headline demand: shelve the rental reform already in parliament and write a new tenancy law from scratch.
He also refused to drop the so-called moderate rent of €2,300 a month. That is the ceiling under which a landlord pays 10% income tax on rent instead of the usual 28%. The PS says the break costs €200 million and would rather spend that money supporting rents of €600 or €700.
A public guarantee scheme covering both landlords and tenants, another PS priority, went nowhere either.
What survived
The government showed “relative openness” to two ideas: exempting from tax the capital gain on selling a family home, and raising IMT, Portugal’s property purchase tax, for buyers who do not live in the country. The PS will now push both in the 2027 budget debate.
The AD’s reply came from PSD parliamentary leader Hugo Soares, who said it is “easier to say no than to work on a solution”, while the CDS’s Paulo Núncio accused the PS of “enormous intransigence”, as ECO reported. Both say the rental law is still open to amendment at committee stage.
And Chega?
André Ventura brought about fifty measures, including restoring the income-tax deduction for mortgage interest on loans signed after 2011 and letting tenants deduct a bigger share of their rent. Nothing was agreed. Chega will now sit down with the Finance Ministry to cost them and wants them in the budget.
The remaining parties meet ministers Pinto Luz, Miranda Sarmento, Leitão Amaro and Abreu Amorim on Friday. JPP’s turn comes on Tuesday.
Image: PES Group Committee of the Regions / Wikimedia Commons (CC BY 2.0)