SPECIALIZED FINANCING ADVOCATES CHANGES IN TAXATION AND UNBLOCKING OF FINANCING FOR THE NATIONAL ECONOMY

Tax changes to prevent discrimination in the access of companies to Specialized Financing and individuals to Leasing for Housing in Portugal, the creation of specific lines of support from Banco Português de Fomento that include Factoring and the participation of Renting in future support systems for electric vehicles and incentives for scrapping are among the proposals of the Portuguese Association of Leasing, Factoring and Renting (ALF) for the 2025 State Budget. 

The association, which represents the main Leasing, Factoring and Renting institutions in Portugal, will be submitting a set of recommendations to the government for the next State Budget with a view to increasing specialized financing, contributing to the diversification of available sources of financing, which is fundamental for supporting business investment and the development of the national economy.

With regards to Leasing, which in 2023 attracted investments worth 2.56 billion euros, ALF believes that the government should allow Real Estate Finance Leasing to finance housing in Portugal, promoting its neutrality and greater competition and diversification of financing sources. It is essential to eliminate discrimination in access to finance for companies, contributing to their investments, and in relation to housing, it is necessary to eliminate tax discrimination in the context of IMI, AIMI and IMT, which prevent individuals from accessing leasing as an alternative, especially as this product finances up to 100% of the value of the property in accordance with the Bank of Portugal's recommendation. 

Regarding Factoring, it is very important to consider specific lines of support from Banco Português de Fomento for the sectors of the economy with the greatest cash flow needs, as well as export incentives that include this solution which, in 2023, took 44.2 billion euros in receivables (5.2 billion euros of which were derived from national exports). 

ALF also argues that a future system to encourage the scrapping of vehicles, as well as support for the purchase of electric vehicles, should include Renting, as this product is one of the main means of renewing the car fleet and is responsible for the energy transformation of the national car fleet. It should be noted that in 2023 Renting accounted for the purchase of 36,000 new vehicles worth 1.02 billion euros and, together with Leasing, accounted for the purchase of 30% of new vehicles sold in our country. 

At the same time, Luís Augusto, president of ALF, believes that, in next year's State Budget, “it is essential to specify the use of these instruments, which have their own specificities resulting from closely monitoring the underlying assets and providing various services”, concluding that “Portugal cannot afford not to take advantage of Specialized Financing products, which are a driver of investment and financing for the European economy”.