- Portugal’s 6% VAT rate for solar panels will expire on June 30, 2025, returning to 23% on July 1, 2025.
- The reduced VAT was introduced to support energy transition and reduce household energy costs.
- The measure aligns with EU directives to promote renewable energy and reduce fossil fuel dependency.
- The 6% VAT applies to solar panels, inverters, solar battery systems, and installation services.
- The tax reduction significantly lowered the cost of residential solar systems.
- Homeowners need to complete installations by June 2025 to benefit from the reduced rate.
- Portugal aims for 80% renewable electricity production by 2030, with solar as a key component.
Source: portugalresident.com
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.
