The Government plans to allow municipalities to jack-up council tax bills for buildings that have been left unoccupied.
The Municipal Property Tax (IMI) rate can be raised for those houses deemed to be vacant "for more than two years, located in areas of urban pressure."
This nugget is contained in the 2019 State Budget that is being discussed by MPs between now and the end of November.
There is no precise definition of 'urban pressure zone' so this is left to each Council to determine, using subjective indicators such how much the property might be worth, the average household income in the area and whether the property is in an area where housing is deemed to be in short supply."
Each municipality can define its own "areas of urban pressure" however it wishes and is free to apply the twelve-fold increase in the rates bill, if it feels so inclined: many will jump at the chance.
The IMI first rises 600% and then will continue to rise 10% for each year the property is left vacant, up to a maximum of 12 times the current IMI bill.
The revenues obtained by Councils in this way will be used "to finance municipal housing policies," hopes the government.
Council possession of derelict houses also is made easier. Changes to The Legal Regime of Urbanisation and Construction will enable the administrative possession of vacant houses after posting a public notice stating that the property will be seized by the State.
This is to be deployed only in cases where the Council does not have a contact address and the owner is untraceable. Many Councils will expend the bare minimum of effort in tracing absent owners.
A percentage of vacant properties in Portugal are owned by Councils or the State but it is illogical that these will be subject to such measures.
António Frias Marques, from Portugal’s property owners association, said that the largest property owner in Lisbon is the State, followed by the Council and that most of their buildings are abandoned.
The proposed new legislation for property includes a scheme where owners have to pay for repair work carried out by the Council on vacant properties.
