Anyone who receives a monthly income of 250 euros can obtain compensation of 100 euros, reveal simulations carried out by lawyers.
dwellings rented before 1990, which did not transition to the New Urban Lease Regime (NRAU), will also no longer transition. This is one of the changes that Mais Habitação brought to the rental market in Portugal. But the law also provided for new monetary compensation to owners who are receiving old rent. But how can this compensation be obtained? And how is it calculated? We explain everything in this article on a legal basis.
With the entry into force of Decree-Law 132/2023, if the value of the monthly rent of the lease contract is less than 1 /15 of the tax asset value (VPT) of the property, divided into 12 months, the landlord may qualify to receive a monthly compensation. And this compensation is exempt from taxes and social contributions.
But what is the amount that landlords with lease contracts prior to 15/11/1990 (and who did not transfer to the NRAU) will receive? To help you understand how the calculation of this compensation for old rents works, Nuno Pereira da Cruz, Managing Partner at CRS Advogados and Francisca Sousa Reis, trainee lawyer also at CRS Advogados, prepared the following practical example with the following characteristics:
- Lease contract for housing purposes signed on 08/15/1990 (any date prior to 11/15/1990);
- House rent 250 euros per month;
- Tax asset value (VPT) of the leased property: 63,000 euros.
To calculate the compensation, first divide the VPT by 15 which gives 4,200 euros. Then, the result is divided by 12 months, which gives 350 euros. Finally, the house rent is subtracted from the last value obtained, making 100 euros. In other words, “in this case the landlord will be entitled to a compensation in the amount of 100 euros, in the form of a non-refundable monthly subsidy”, conclude the experts.
How can landlords request this compensation for old rents?
Landlords with old lease contracts who wish to benefit from this compensation must, from July 1st of this year, submit a claim to the Institute of Housing and Urban Rehabilitation, I.P. (IHRU), a request for compensation, duly accompanied with the necessary documentation.
“Once the request is submitted, the IHRU will have a period of 30 days, counting from the date of its receipt, to communicate its decision, and, if this is approved, its effects will be verified. from the date of its submission to the IHRU”, they also explain from CRS Advogados.
This compensation for old rents is granted over a period of 12 months, and is renewable for equal and successive periods, upon demonstration by the landlord to the IHRU that the maintain the requirements required for their attribution.
It is also important to note that “the amount of compensation to be attributed to the landlord may undergo changes if the annual rent update operates, by applying the respective legal coefficient [up to 6.94% in 2024]. If this situation occurs, it is up to the landlord to inform the IHRU, within 30 days from the communication of the said update to the tenant”, further indicate Nuno Pereira da Cruz and Francisca Sousa Reis.
It should also be noted that “there are several situations in which the payment of this compensation may cease before the expected term, from the termination of the contract itself, to the verification of the expiry of the right to compensation”, they conclude the experts at CRS Advogados.
Article Published on Idealista News
