6% VAT on Housing Construction to Be Paid by Sellers, Not Builders, Under New Law

• The 6% VAT on house construction up to €648,000 will be paid by property developers instead of builders, through a “reverse charge” mechanism.
• This measure is part of a fiscal package to be submitted to Parliament after the state budget process concludes.
• For rental properties, the maximum rent eligible for the reduced VAT rate is €2,300.
• The new rules will apply retroactively from the time of legislative authorization.
• The reverse charge will apply across the entire construction industry, including material suppliers.

Source: jornaldenegocios.pt

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.

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