Factsheet for measure
PT-2023-12/3173
– measures in Portugal
Financial support for the cost of rent
Apoio extraordinário à renda
Background information
In response to the high inflation caused by the war in Ukraine, the Portuguese government approved a set of measures that address the economic impacts of the war on incomes and access to housing.
This measure is part of a wider package of measures called More Housing (Mais Habitação). See related measure
Temporary interest rate subsidy for housing loans
.
Decree-law 23-B/2023 establishes a temporary financial support mechanism for housing costs. Financial resources will be provided for people to pay the cost of rent. The support mitigates the effects of inflation and rising interest rates on housing credit, increasing household disposable income and contributing to the achievement of the national plan to guarantee decent housing for all.
Content of measure
This support is automatically assigned by Social Security, with no need to request, it ranges from €20 to €200 per month and is for the payment of rent from a lease or sublease of first dwellings. It corresponds to the difference between the value of the rent and the amount that would be paid if the effort rate was 35% of the average monthly value of income.
In order to be eligible for financial support, the applicant must:
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Be a taxed resident in Portugal
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Have an annual income up to the ceiling of the sixth tier of the IRS (up to €38,632)
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Have an effort rate equal to or greater than 35% of the annual income
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Ensure that contracts are concluded by 15 March 2023.
This measure also covers beneficiaries of the following social benefits:
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Old age, survivor, disability or social pensions
-
Unemployment benefits
-
Parental benefits
-
Benefits for sickness and occupational illness, for a period of not less than one month
-
Social insertion income
-
Social benefit for inclusion
-
Solidarity supplement for the elderly
-
Main informal carer support allowance
The rent support is monthly, non-refundable and corresponds to a percentage of the monthly rent set in the lease or sublease contract.
The first payment of support shall compute the totality of the amounts due since 1 January 2023.
The total amount of the extraordinary and temporary support for families for rent support and interest bonus is €460 million.
Use of measure
According to information provided by the Prime Minister
during a press conference
, the extraordinary support to rental covers 150,000 contracts. This corresponds to about one third of the rental contracts in Portugal.
According to
Jornal de Negocios
, the extraordinary rent support starts to be paid on 30 May 2023. The average monthly value is €86,72. This support will covering almost 35,000 families on social benefits.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Consulted
|
Consulted
|
|
Form
|
Consultation through tripartite or bipartite social dialogue bodies
|
Consultation through tripartite or bipartite social dialogue bodies
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Social partners jointly
-
Main level of involvement: Peak or cross-sectoral level
Involvement
The package More Housing (Mais Habitação) was presented to the Economic and Social Council (Conselho Económico e Social) by the Minister for Housing.
The package was further discussed at the Permanent Committee for Social Dialogue.
Views and reactions
Several social partners expressed their views and criticisms on the More Housing package.
The General Confederation of Portuguese Workers (CGTP-IN) said that the measure bypasses structural issues and is not the answer that the moment demands. More construction and rehabilitation of public housing at affordable prices is urgent and necessary. They said that there needs to be a policy that guarantees the right to housing in the Constitution and that measures that restore and valorise wages and pensions are urgently needed, according to CGTP-IN.
The General Workers Union (UGT) expresses its hope that the government moves forward with new and strong measures that do not ignore the fact that many Portuguese families have growing expenses with loans for the acquisition of permanent home ownership.
The new president of the Confederation of Portuguese Business (CIP) speaks of "delirium of government legislation", criticising the More Housing package. He stated that the "state bubble" limits the action of companies.
The real estate associations / Confederation of Commerce and Services of Portugal (CCP), expressed their objection to the programme, and demand that the housing problem in Portugal is treated seriously. They wanted more stakeholder involvement in the creation of the measure. One of the main problems is the lack of confidence that is being created among investors, and many of the most controversial measures concern the rental market.
Sources
