State will rent houses and then sublease them

The decree-law that creates a rental regime for subletting to families with difficulties in accessing housing was published in the Diário da República. This is one of the measures that is part of the "More Housing" package.

The State will ask private individuals to voluntarily lease properties, houses that are vacant and ready to be inhabited. These houses are then sublet to families with maximum effort rates of 35%. 

The houses are rented by the Institute of Housing and Urban Rehabilitation I.P. (IHRU, I.P.), which guarantees the payment of rents and, when the contract ends, guarantees the delivery of the houses in the same conditions in which it received them.

The IHRU and the landlord establish the price of the rent up to a limit of 30% above the general rent price limits, by type and municipality where the property is located.

The contracts have, as a rule, a five-year duration, and cannot be shorter than three years.

The State pays the rent to the landlord and the tenants pay an amount set by the IHRU which must correspond to a maximum effort rate of 35% of the household's average monthly income.

The following can apply for the lease

• one-person households whose maximum gross annual income is equal to or less than the IRS 6th bracket
• two-person households whose maximum gross annual income is equal to or less than the 6th income tax bracket, plus 10,000 euros
• households of more than two people whose maximum gross annual income is equal to or less than the 6th income tax bracket, plus 10,000 euros, and 5,000 euros for each additional person.

The houses are allocated through a draw made by the IHRU.have priority in the modalities to be defined by the IHRU, young people up to 35 years, single-parent families and families with falls in income exceeding 20% compared with the income of the previous three months or the same period last year.

Source: Government Portal