- The government plans to reduce VAT on construction from 23% to 6% for new housing projects, effective from 2026.
- The reduced VAT will apply to houses for sale up to 鈧�648,000 and rentals up to 鈧�2,300 per month, mainly targeting high-demand areas like Lisbon and Porto.
- The main impact of the VAT reduction is expected to be felt from 2027 due to project approval and construction timelines.
- The measure will be in effect until 2029 and is part of the “Building Portugal
- Renting and Simplification” package to boost affordable housing.
- The proposed law has not yet been formally submitted to parliament and is not included in the 2026 State Budget.
Source:
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Portugal"
- Portugal Introduces VAT Grouping Regime Allowing Single VAT Return for Linked Companies
- EPPO Investigates Suspected 鈧�19 Million EU Subsidy Fraud and Ecological Damage in Portugal
- Portugal 2026 Budget: Extended VAT Reductions and E-Invoicing Deadlines Announced
- Government Plans 6% VAT on Construction Until March 2026, Major Impact Expected in 2027
- Government Plans 6% VAT Rate for Housing Construction by Early 2026, Major Impact in 2027
