An estimate that over one million properties may have their rates bills raised is contained in a proposal by the 'Group of 12' economists reporting to socialist party leader António Costa.
The Algarve would be hard hit along with Sintra and Cascais (pictured).
The estimate is that 19% of Portugal’s housing stock could be designated as second properties, around 1.1 million houses and apartments, which are not being used permanently by their owners.
This figure is based on Portugal’s 2011 Census and the group of 12 economists, invited by the socialist party leadership to present macroeconomic scenarios for Portugal to 2019, have proposed the initiative as part of António Costa’s socialist party manifesto to be released in June.
The purpose, according to the carefully chosen egg-heads, is to increase the supply of rental properties and to fiscally penalise properties which are not being used as they are holiday homes or weekend homes with a seasonal or secondary occupation.
As only a small percentage of these properties are registered as 'Alojamento Local' to enable their legitimate rental, the economists concluded with breathtaking accuracy that some of these properties may be being let out illegally.
According to the 2011 Census, the areas of the country with the most second homes are Lisbon (35,000), Loulé (29,000), Albufeira and Almada (21,000), Sintra (17,000) and Cascais (14,000).
The gloomy president of the Lisbon Owners Association, Luís Menezes Leitão, commented that he of course was concerned about the economists’ proposal, and that "a measure like this would cause the collapse of the industry."
Many owners already have had whopping rates rises recently and a further hike would be "a serious problem for homeowners in seaside and weekend home areas such as the Algarve, Sintra and Cascais," according to Leitão.
The economists did not firm up on a figure for rates rises on second homes but suggested a surcharge of up to 1.5% of the property value.
