Portugal chose anti-austerity line to raise pensions

Portugal will introduce a tax on real estate fortunes above € 600,000 ($661,000) in 2017 to help pay for pensions, the government has said. The measure was introduced by Prime Minister Antonio Costa's in draft budget for 2017.

He explained the property tax income would be used to sustain Portugal’s social payments – everything from pensions to the health service to family benefits.
It will particularly hit Chinese and other non-European investors who have bought homes worth at least 500,000 euros to be eligible for a residence permit under the so-called golden visa programme.

The Association of Lisbon Homeowners (ALP) criticised the new tax, calling it an "unprecedented fiscal attack against the real estate sector".

The Socialist government, backed by Communists and the far-left Left Block, has also decided to raise its tax on the home rentals for tourists.
In addition to rifomer handout, the government has decided to introduce a tax on sugary drinks, as requested by the World Health Organization (UNO). Sugary drinks based on milk or fruit juice would be spared.

GDP is forecast to grow by a little over 1 percent this year down from last year’s 1.6 percent. The 10-year governative yeld bond is at above 3%.