The Left Block, a partner in the governing coalition, proposes changes to current Local Lodging legislation. Under the soon-to-be recommended plan, holiday letting not exceeding 90 days per year should continue to benefit from the current tax regime. Year-round operation – without a limit of days and designated as “tourist accommodation” (Habitação turística) – must be equated with a hotel activity and assessed on the same basis.
The Government is studying a new requirement for Local Lodging that would mandate higher condominium levies for owners who engage in holiday lets. If adopted, it would collide with another bill where the condominiums would be given the power to authorise, on a case-by-case basis, the possibility of owners renting short-term to tourists. The latter proposal was made in absentia and without the governmental consent.
The creation of a Porto Municipal Tourist Tax, which might reach two euros per night, is designed to solve housing problems and omits improvements in the tourism sector, claims the Hospitality Association of Portugal. The City Council explained, “the proceeds of this levy are to be applied in projects aimed at promoting housing for the middle and lower middle class in the historic centre to accelerate the repopulation and curb pressures from real estate development.
Lisbon has experienced the greatest decline in the number of young adults within Portugal in recent years. One factor contributing to the drop is the difficulty in finding affordable housing. In 2012, the median rent in Lisbon was €268, according to INE (“Instituto Nacional de Estatística”). In 2016, the average climbed to €830.
But high rent is only part of the problem. The ageing of the population is at the root of the decrease. In 1991, Lisbon had 138 seniors for every 100 young people (from 0 to 14 years old). By 2016, the number of elderly rose to 182, a proportional increase of 24%, making Lisbon the oldest council in the nation. Provisional population estimates advanced by INE indicate that the number of young people aged between 20 and 34 living in Lisbon went down from 95,830 in 2011 to 67,916 in 2016, a net loss of 29%.