Chega Pushes for Mortgage Interest Deduction in Portugal’s 2027 Budget
📌 Key Highlights & Context
- Chega wants to restore the mortgage‑interest deduction removed after the Troika era
- Ventura suggests limiting the benefit to loans with monthly installments up to €1,200
- The proposal is framed as a core element of the housing‑crisis debate within the budget process
Chega’s Proposal
The Chega party is urging the government to re‑introduce the ability for taxpayers to deduct mortgage‑interest payments from their IRS returns, to be codified in the 2027 State Budget (OE2027). Party leader André Ventura argues the measure, abolished during the Troika period, would ease the financial burden on families.
Scope and Conditions
Ventura proposes that the deduction apply to loans with monthly instalments of up to €1,200, though the exact ceiling may be refined later. The aim is to target low‑ and middle‑income households.
Political and Economic Context
Prime Minister Luís Montenegro invited opposition parties, including Chega and PS, to discuss solutions to the housing crisis. Chega insists that any housing‑policy talks must be linked to the budget, as they directly affect fiscal revenue.
- Chega acknowledges the deduction could reduce short‑term tax receipts.
- The party argues the measure will stimulate demand in the housing market, offsetting revenue loss over time.
- The success of the proposal will depend on parliamentary negotiations with other parties.
Sources
OE2027. Chega vai exigir dedução dos juros do crédito da casa no IRS