Affordable Rental Program Creates Six Pricing Tiers. Lisbon is at the Top.

6 June 2019Richard D. K. Turner

The regulatory framework for the affordable rental program, consisting of three administrative orders, set out general rules for participants, including maximum rents to be charge. The program states that rents should be set at 20% below the prevailing market rates in each region. In practice, that means that a two-bedroom flat in Lisbon would have a maximum permitted rental of 1,150 euros/month, 1,000 euros in Porto, and 775 euros in Alamada.

The country was divided into six levels, depending on price, with Lisbon occupying the highest tier on its own. The next tier consists of Cascais, Oeiras and Porto. The fourth comprises a total of twelve 12 municipalities – Albufeira, Almada, Amadora, Castro Marim, Funchal, Lagos, Loulé, Loures, Matosinhos, Odivelas, Sintra and Tavira. The remaining municipalities in Portugal are divided between the last three tiers.

The Affordable Rental Program (PAA) will enter into force on July 1, and grants participating property owners advantages such as exemptions from income taxes on rental receipts.

Original Story: Economia Online