In a significant move for the property sector, the government has announced the repeal of several restrictive measures previously imposed on local accommodation. Local accommodation, which ‘has helped the country a great deal over a decade’ and ‘has allowed city centres to be reborn’, was the focus of recent government decisions. Recognising the negative impacts of previous policies, the Minister stressed the need for fairness and moderation in the treatment of this vital sector.

MAIN CHANGES:

            1. Repeal of the Extraordinary Contribution - This measure eases the financial burden on owners who have invested in local accommodation, removing one of the main obstacles to investment.

            2. Change in the Vetting Coefficient - The repeal of this setting will prevent an increase in the IMI of properties used for local accommodation, providing a more favourable tax environment.

            3. Repeal of Regulatory Prohibitions - Several prohibitions that precariously affected licences already issued have been removed, restoring long-term investor confidence.

The Minister stressed that these changes do not mean a complete liberalisation or deregulation of the local accommodation market. Instead, they promote a balanced and moderate vision, decentralising power to local authorities, who will have more autonomy to create and enforce rules that suit their local realities.

DECENTRALISATION AND EFFECTIVE REGULATION

The government is betting on decentralisation, giving local authorities responsibility for responding to urban and tourist pressures in a balanced way. With new rules for issuing and registering licences, as well as managing conflicts between owners, more effective regulation is expected to balance the interests of all those involved.

These measures, according to Leitão Amaro, are in line with election commitments and reflect the government's active listening to the various organisations in the sector. ‘We respect the initiative and private property of those who have invested in local accommodation, reinforcing rules of quality and sustainability in the use of these properties,’ said the Minister.

With these initiatives, the government is seeking to revitalise the local accommodation sector, guaranteeing a fair and stable investment environment that benefits both the owners and the communities where these properties are located.