On Thursday, Portugal unveiled a comprehensive package of measures to combat the housing crisis in the country. They include ending the controversial "golden visa" and banning the issuance of new licenses for short-term vacation rentals, such as through Airbnb, Reuters reports.
Portugal has seen unprecedented increases in rents and property prices. In 2022, rents in Lisbon alone increased by 37%. In addition, over 50% of workers in the country earned less than 1,000 euros a month last year.
Housing groups have argued that the combination of low wages, a thriving real estate market, policies aimed at attracting wealthy foreign investors, and an economy heavily dependent on tourism has made it difficult for locals to buy or rent property in Portugal. The country's inflation rate, currently at 8.3%, has exacerbated this problem.
Prime Minister Antonio Costa acknowledged that the housing crisis in Portugal is now widespread and affects not only the most vulnerable, but all families in the country.
It's still uncertain when the measures, which amount to at least 900 million euros, will take effect. Costa said that some of the measures will be approved as early as next month, while others can only be implemented after a vote by lawmakers.
The prime minister also announced that the government plans to introduce a mechanism to regulate rent increases and offer tax incentives to landlords who convert tourism properties into rental housing for locals.
This initiative aims to mitigate the effects of the housing crisis and provide more affordable housing options for Portuguese people.
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Ban on new licenses for short-term vacation rentals
As part of the measures, new licenses for tourist accommodations such as Airbnbs will be prohibited, except in sparsely populated rural areas.
This move aims to address the shortage of long-term rental properties in the country by discouraging property owners from offering their homes exclusively as short-term vacation rentals.
To combat the housing shortage, Costa proposed that the government rent vacant properties directly from landlords for a period of five years and then make them available on the rental market.
Portugal's golden visa program–which provides EU passports to non-EU citizens in exchange for investments, including in real estate, and has come under criticism for driving up both home prices and rents–will be discontinued.
Since its launch in 2012, a total of 6.8 billion euros has been invested in the program, with much of the money going into real estate.
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