Portugal curtails Airbnb and ‘Golden Visa’ to address housing crisis

Portugal has announced a significant package of measures aimed at addressing the country's housing crisis. The measures include the termination of the controversial "Golden Visa" scheme and a ban on issuing new licenses for short-term holiday rentals such as Airbnb.

The housing crisis has resulted in skyrocketing rents and house prices, particularly in Lisbon, where rents increased by 37% in 2022. Many housing groups have attributed the problem to low salaries, a red-hot property market, policies encouraging wealthy foreigners to invest, and a tourism-dependent economy. These factors have made it difficult for locals to rent or buy homes, exacerbating the problem. In addition, Portugal's 8.3% inflation rate has compounded the issue.

The new measures, which are worth at least €900 million, will include the introduction of a mechanism to regulate rent increases, tax incentives for landlords who convert tourism properties into long-term rental properties for locals, and the state renting vacant houses directly from landlords for five years to put them on the rental market.

However, some critics have voiced concerns that the government's tax breaks for landlords who convert tourism properties into houses for locals to rent will benefit those who have already profited from housing speculation. The Social Democrats have also expressed concern that the measures will infringe on property owners' and businesses' rights.

In addition to these measures, Portugal will also end its Golden Visa programme, which has been criticised for inflating house prices and rents by offering EU passports to non-EU nationals in return for investments in real estate. Since its inception in 2012, the programme has attracted €6.8 billion in investment, the bulk of which has gone into real estate.

While some housing groups have welcomed the measures, others have expressed scepticism, stating that the government's promotion of other policies aimed at attracting wealthy foreigners to Portugal, such as the Digital Nomads Visa, will continue to contribute to the housing crisis. The system in which large real estate investment funds control a significant portion of the market will also remain unchanged. For most people, rents will remain unaffordable, and owning a home will remain out of reach.

Prime Minister Antonio Costa acknowledged that the housing crisis is now affecting all families, not just the most vulnerable. The measures, some of which will be approved next month, while others will be voted on by lawmakers, are a significant step towards addressing Portugal's housing crisis. However, further efforts will be necessary to make housing affordable for all Portuguese citizens.

Next (China to boost private investment in real estate through pilot schemes)

Portugal curtails Airbnb and ‘Golden Visa’ to address housing crisis

This Month

Overview

Explore

Join Us