News
18/09/2015

Portugal: Family size taken into account on property tax

For the last state budget the Portuguese Parliament approved the possibility for municipalities to reduce the housing tax depending on the number of children. According to this law, the municipality is able to decrease the tax up to 10% for a family with one child, 15% for a family with two children and 20% for a family with three or more children.

This tax is collected by the municipalities considering various housing factors, namely, size, location and level of comfort; but it did not take into account the number of persons living in the house. The Portuguese Large Families Association has always fought for this measure given that, for a large family, a bigger house is not a luxury but a necessity. Therefore, this initiative is about equity and justice. Nonetheless, APFN’s proposal advocated that the discount should increase regardless of the number of children, instead of stopping at three. Now that the municipalities are making their Budgets for 2016, this measure is being implemented by many.