New tax applies to ‘apartments and lodgings in autonomous fraction of a building’
Parliament has approved in detail the extraordinary contribution on short-term rental apartments and lodgings, having rejected proposals from centre-right parties to eliminate the tax, writes Lusa.
The extraordinary contribution was approved with votes in favour from PS Socialists and Bloco de Esquerda (BE). PCP communists abstained, and centre right/ right wing parties all voting against.
Said the PS text: “An extraordinary contribution is created on short-term rental apartments and lodgings in an autonomous fraction of a building”.
Properties “that are not autonomous units or parts or divisions capable of independent use, as well as short-term rentals that operate in own and permanent housing, provided the operation does not exceed 120 days per year” are excluded, explains the State news agency.
“The measure approved today, which was the target of several proposed amendments by the PS, also determines that coefficients applicable to the year 2023 must be published by order of the member of the government responsible for the area of finance within 60 days after publication of the ‘More Housing’ (Mais Habitação) law.
This new tax was initially planned to be 35%, but was successively reduced to 20%, and then to 15%.
In addition, the PS also proposed – and this was approved (with PS, BE, and PCP voting in favour, the PSD abstaining and Chega and Iniciativa Liberal voting against) – that the tax cannot be deductible when determining taxable profit in IRC, “even when accounted for as an expense in the tax period”.
Proposals by the PSD and IL to eliminate the tax were rejected. However, the members of the Commission of Economy, Public Works, Planning and Housing approved a proposal presented today by the PSD regarding consignment of this tax which, in the case of the autonomous regions of Madeira and the Azores, is consigned to Investimentos Habitacionais da Madeira and to the Direção-Regional da Habitação dos Açores, respectively.