António Costa announced recently the end of the Non-Habitual Residents (NHR) regime in Portugal, a decision that left the market in shock, according to a report by idealista. In addition to stirring up concerns in Portugal, the news crossed the border and quickly reached Spain, with the country preparing to create a new tax relief regime for former residents.
“Spain immediately took advantage of this episode to publicise its program, which is similar to the Portuguese one, because it recognises that it has lost a very competitive competitor”, warns Jorge Bota, president of the Association of Real Estate Consulting and Valuation Companies (ACAI), in statements to idealista/news.
“Portugal is clearly losing a factor in attracting staff, especially at a time when the economy needs them, whether due to the low unemployment rate, the inability to retain our talents or the added value of the sectors in which they operate economically”, he adds.
According to the managing partner of the consultancy B. Prime, the end of the NHR in Portugal “will have certainly impact” on the national real estate sector, “since it is an active market niche mainly in higher-end residential developments”.
However, says the expert, it will not be a measure like this “that will solve the housing problem for the Portuguese”. “We are talking about a small number of people per year”, he explains.