- 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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