en 
After receiving a proposal from the city council, owners of vacant properties “in habitable conditions” will have 100 days to use them until they are forced into coercive leasing, according to the proposal that the Government has placed in public consultation.
"Properties for residential use classified as vacant", may "be subject to forced leasing by the municipalities, for subsequent subleasing within the scope of public housing programs", reads the proposal published on the Lex Consulta website.
To this end, the Government determines that it will be up to the municipal councils to present a proposal to the owner, who will have “a period of 10 days from its receipt” to respond. In case of refusal or lack of response by the owner, “and if the property remains vacant for another 90 days, the municipalities will proceed with the forced lease of the property”, it reads.
The Executive also explains that if the property needs work, this can also be done "coercively by the municipalities", with the "compensation carried out on account of the rents due".
As had already been advanced by the Executive, outside are the “second homes, homes of emigrants or homes of people displaced for professional, training or health reasons“, which are “acquired for resale by natural or legal persons”, as well as such as “part of a tourist enterprise or registered as a local accommodation establishment” or that “pending legal actions” prevent their use.
This is one of several measures included in the “More Housing” package, presented by the Executive on February 16 and which is in public consultation until March 10. The measures will cost around 900 million euros (excluding the cost of works, purchases or rents that may be paid by the State) from the State Budget for 2023.
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This is insane. Portugal already has one of the lowest levels of housebuilding in Europe. This will further damage the housing market and the credibility of the country as a business-friendly environment.
By Alex from Algarve on 05 Mar 2023, 18:12
I’ve never in my life anywhere in the world seen such a method of theft, because that is what it is.
Surely the Gov can’t get away with such tyrannical methods.
By JG from Algarve on 06 Mar 2023, 08:29
It's not for any govt to tell people how they should use their property, and to effectively confiscate it if it's vacant but habitable. If someone wants to buy 1,000 properties and keep them all vacant, that's their prerogative, and not something the govt should interfere with. In this extreme example, the owner of 1,000 vacant properties would be paying 1,000 amounts of IMI to local councils. I am not responsible for other people's housing problems, and govt interference in the housing market usually serves to only make matters worse.
By Billy Bissett from Porto on 06 Mar 2023, 10:48
Just a very right decision. - The Government tries to put right the great mistakes it has done with the Golden Visa - program by collecting Russian and Ukrainian oligarks into the country by granting these people a hidden place to cover their illegal money stolen from their previous nations.
By Eero Noukkala from Algarve on 06 Mar 2023, 10:48
The Portuguese authorities are worried about the private properties. On the other hand has frozen Vale da Telha, Aljezur, Algarve, for more than two decades. The private owners are unable to use their own vacant land to build their own houses.
By Ana Paula Cabrita from Algarve on 06 Mar 2023, 12:04
With global confidence in Portugal at stake, and with the Portugal News a vital lifeline to would-be expats worldwide, this sort of headline is not helping! This is a proposal, which you have made sound like an implemented policy!
By Carl Munson from Lisbon on 06 Mar 2023, 12:57
I was considering buying a vacation residence there in the Algave reagion in the near futur, but with that kind of ruling no thank you. I will just continue to stay in hotels
By Laurent Courbin from Other on 06 Mar 2023, 13:33
Is Portugal a democracy??!!!
There would not be such housing issues here if a) Govt built some social housing; b) if the taxes & rental conditions were not SO onerous investors would be inclined to “buy to let”.
BUT this Govt is what ppl asked for !!!
By L from Other on 06 Mar 2023, 14:40
Wow! Are we living in Venezuela here? So, just so I got this correctly, the government can take my house, renovate it, and then effectively charge me for the renovations? And agree to a rental contract, way below market rate on my behalf? Ummm... is anyone taking this to the European courts?
By Eddie from Algarve on 06 Mar 2023, 16:08
Well where I live in Sintra centre it is cul-de-sac street with only 12 houses big houses and a quinta plus gardens and their is 4 houses that no one lives or even the owners go their the only people that go are gardens and cleaners. And this isn't very good the houses stay their unoccupied houses without no one living their . There is a need a solution for the problem since their is many people without a house and a place to live ,
By Isabel Oliveira from Lisbon on 06 Mar 2023, 16:35
Without knowing the full details of the proposal, I am curious about a few things:
If the owners of the vacant properties are forced to lease them via government intervention, is the property owner keeping the monthly rent, or is the government dipping into it? If so, it seems like a win for owners and tenants via income/place to live. Is the government setting the rental amounts or are the owners doing so? This is where I see a major issue because the government shouldn't dictate what an owner can get and if so, should subside fair market amounts, and if the owner doesn't want to rent, they can set the rental amounts so high that they are unattainable to some, thus keeping the property empty anyway.
By Brian from USA on 06 Mar 2023, 16:55
Welcome to the New World Order, where you will own nothing and be happy by 2030 (WEF)
By NN from Beiras on 06 Mar 2023, 18:02
Yes, finally, our government is doing what it should have done decades ago! Away with the hoarding and sitting on empty properties only so that new investors can come and build new houses and sell for massive profits. We do have houses, and they will be occupied by people. In our country, we have a guaranteed right to housing. The housing should always be made available for the working class by taxing the wealthy. The housing must be subsidized and there should ALWAYS be caps on how much rent can be charged based on individual income. No we don't need American or English style capitalism here. Please, leave if you don't believe that working class should have affordable housing with rent control, living wage, massive restrictions on investors and speculators.
By Anna from Lisbon on 07 Mar 2023, 11:34
Brian- there is a simultaneous proposal. If owners rent out the property of their own accord, they can charge whatever they want and will also receive a full tax reprieve- zero tax on rental income. If they do not- then- the government will set the price, lease out their property for 5 years, conduct repairs which will be deducted from rents. So, while the rent will go to the owner, it would still be taxed, and it would also be reduced by any repairs required. The incentive here is for people to get tenants in houses and to bring down the cost of housing immediately and end artificial scarcity. Also, this is a proposal that is unlikely to pass. But it my view, it should pass. In the Portuguese constitution, housing is meant to be a right. It is not justified that foreign interests and private equity rake treat something that people need to live as a financialised cash cow. If investors were smart, they could support measures that would facilitate more accessible housing, but they have been greedy, and there is HUGE anger from the general public. So SOMETHING has to happen, even if these measures don't pass.
By Djuna from Lisbon on 08 Mar 2023, 16:13
This will be the end of property development and a huge drop in property prices, and the biggest losers will be the Portuguese, as they own 70% of all properties in Portugal. The government is passing the buck to the private investor to sort out its own mismanagement. Goodbye investors….
By Henrique from Other on 10 Mar 2023, 14:50