The government has reviewed the criteria for properties being considered “vacant”, which may imply an increase in IMI (Municipal Property Tax) by three to six-fold. The increase will occur when an abode is located in a “pressure zone” and has remained empty for more than two years. Lack of consumption of utilities such as water and electricity will be the prime indicators. Exempt from the concept of “vacant” are dwellings integrated in tourist developments or registered as Local Lodging as well as second homes not located in the same municipality where the owner is resident.
Last year, 152,000 homes were sold in Portugal, an increment of 25%. French and Brazilian are the foreigners who are buying more properties. The jump in demand also led to a substantial increase in prices: Lisbon up 37%, Oporto 29%, Madeira 24% and the Algarve 18%.