Income: Learn about the new support for tenants.
The rent control imposed in 2023 ends in December, and new supports will be implemented starting in January. Learn about the supports and the impact they may have on your budget.
Problems with credits or insurance? The credit intermediaries and insurance mediators from Poupança no Minuto are experts who can help you save money with these products. Contact us so we can try to achieve the greatest savings and enter 2024 without financial problems.
But if you are a tenant, first understand what will happen to rents next year.
Government announces new income support, instead of a new brake.
The Government announced the new measures regarding rent support to help tenants, instead of imposing a new brake.
Now, the rents will be updated by 6.94% from January 2024, ending the imposed limit of 2% in 2023.
But what supports are available from the Government to compensate for the rise in rents? Get to know:
- Two-thirds of the increase in rents for tenants with an effort rate above 35% will be shared
According to the press conference of the Council of Ministers, as stated in the statement released by Notícias ao Minuto: "The State will co-finance more than two-thirds (4.94%) of the rent increase for households up to the 6th income tax bracket, with effort rates above 35%. Thus, these tenants will bear only 2% of the increase, compared to the expected 6.94% increase resulting from the legal and automatic rent update formula".
Therefore, it will be a measure updated automatically in support for tenants who already receive the extraordinary rental support.
Let's look at an example? Notícias ao Minuto explains that "a rent of 800 euros per month and a salary of 11600 euros currently receives a support of 200 euros per month (2,400 euros per year)". With the update of rents in 2024, the rent value increases by 55.52 euros, but updating the support results in an extra income of 39.5 euros (474 euros per year). This implies an extra monthly effort of 16.02 euros.
- Limit of deduction with incomes increases by 10%
A second measure emerges in addition to the one above, now regarding the tax deduction for tenants.
All households will now be able to deduct an additional 10% from rent, alleviating part of the increases in rent.
In other words, "the deduction limit for income from rent will increase from 502 euros per year to 550 euros," clarifies the news.
In general, the increase in income will be equivalent to 2%
Through the statement cited by the news platform, Finance Minister Fernando Medina ensures that, in general, the increase in rents will be equivalent to 2% in most families. This is to counter negative comments about the decision to end the rent freeze, made by the coordinator of the Left Bloc (BE).
"What is determined for the large portion of Portuguese families is that the increase relative to rents is an increase of 2%," since "that is what consecrates the decisions that the Government made in the Council of Ministers," explains.
In response, Housing Minister Marina Gonçalves also demonstrates that this is an "agile and automatic" way to respond to the increase in rents, which she considers to be a "balanced, fair and substantial measure" in achieving the goal. Furthermore, the minister also emphasizes that the majority of households with rental contracts will be covered by the measure.
If you need to stretch your budget in 2024, know that Saving in a Minute can help you save with loans and insurance. This can be done through a credit consolidation, or insurance transfer, for example.
The credit intermediaries of Poupança no Minuto offer a free service and constant support to help you grow your budget! Contact us and see what we can do for you.