Socialists unveil tax incentives to push vacant homes onto Portugal's market

In an open letter published in Público, Socialist leader José Luís Carneiro urged Prime Minister Luís Montenegro to adopt a three-year tax scheme designed to bring empty homes back into use. The package would exempt capital-gains tax on sales of properties priced up to €300,000, with reduced rates for homes between €300,000 and €500,000, and would also lift stamp-duty on qualifying purchases and mortgages. For landlords, an optional five-year lease would be taxed at a flat 5% rate, backed by a public guarantee to cover rent defaults.

Carneiro also called for a voluntary state-backed rental guarantee targeting tenants aged 18-35 and low-income households, as well as an increase in the annual rent-deduction to €1,000 from 2027. These measures complement the party’s longer-term plan for a National Affordable Housing Service (SENHA) and are slated for debate as the parliament prepares the 2027 State Budget, though they remain opposition proposals pending legislative approval.