Housing. “We have to look at rehabilitation as the solution”

Othe professionals of condominium administration argue that rehabilitation has to be the center of the solution for the housing crisis and propose VAT at 6% in works in common parts and the deduction of these in the IRS.

The National Association of Condominium Management Professionals (ANPAC) has already been received at the Assembly of the Republic, at a hearing where it has presented a set of proposals to help solve the housing problem.

“ We really need to look at rehabilitation as a solution to the housing crisis [...]. The government has to help condominiums in the rehabilitation of buildings ", said the president of ANPAC, Alexandre Teixeira Mendes, in statements to Lusa.

For the president of ANPAC, the State Budget for 2027 (OE2027) is focused on creating the offer, but the professionals of the condominium administration want to go further and put the rehabilitation of the housing park at the center of the discussion.

Data from census 2021, cited by ANPAC, show that more than five million Portuguese live in condominiums and that 35.8% of the country's buildings, i.e. almost 1.3 million needed repairs.

According to the National Institute of Statistics (INE), in the third quarter of 2026, housing prices rose by 16.5%.

The condominium management professionals therefore propose that a VAT rate be applied – Value Tax Added to 6% in all works in common parts of condominiums, including materials and elevators.

On the other hand, they want these works and part of the condominium quotas to be deducted from the IRS – Income Tax of Singular people.

“ The creation of measures that underpin the new construction is absolutely imperative [...], but we also want to rehabilitate the existing ones. If we get the buildings rehabilitated, people will have decent houses, able to inhabit and will not need to look for new houses ", insisted Alexandre Teixeira Mendes.

As the President of ANPAC said, the State Budget already provides for a reduced VAT rate for new housing, but the association wants this measure extended to rehabilitation.

As regards the deduction of the quotas of condominiums and works in IRS, he explained that this is a possibility that already exists when the fraction is leased, that is, the owners cannot do so.

Joana Gonçalves from ANPAC told Lusa that it is no use creating an incentive to buy electric vehicles, if the condomines cannot load them.

Our proposal attempts “to combat a little the asymmetry between a villa and the apartments, creating a regime that is adapted to horizontal property”, he noted, adding that the works that prevent housing from degrading remain subject to a restrictive tax framework.

In these works, as Joana Gonçalves pointed out, the reduced rate cannot be applied when the materials exceed 20% of the value of the undertaking. The association indicated that this happens in most interventions in facades, covers or waterproofing.

For the Tax Authority (AT), repair of lifts is excluded from the reduced rate.

ANPAC acknowledges that the ‘timings’ for the OE2027 do not allow the inclusion of these measures and that it is necessary to calculate their impact, but warns that the cost of non-adoption can be very high.

“[...] More than in the State Budget, this should be seen even if it was in a special way because the delay of this situation is already causing delays [...]. The subsequent postponement of the works leads to the worsening of the aging of our built and the lack of resilience to climate change ", Joana Gonçalves said.

The ANPAC proposal for the OE2027 also includes the creation of a public programme to support the conservation, rehabilitation and efficiency of buildings built on horizontal property, which includes financial contributions for conservation and security works and incentives for energy efficiency and decarbonisation interventions.

In addition, the development of incentives to strengthen the common reserve fund, as well as long-term financing instruments and partial public guarantees.

The programme should also have technical support for the preparation, recruitment and supervision of interventions.

The overall final vote of the OE2027 is scheduled for November 24.