- Portugal’s parliament approved a VAT reduction to 6% on construction for permanent housing, with opposition from PS, abstentions from Chega and Livre, and support from PSD, Iniciativa Liberal, and CDS-PP.
- The VAT reduction only applies if the property is used as a primary and permanent residence for at least 12 months, with exceptions for exceptional circumstances.
- Additional approved measures include capital gains tax exemption for reinvestment in rental properties, increased rent deduction limits for tenants, a reduced 10% tax rate on rental income, and exemptions from IMT and IS taxes on properties intended for residential rental or subletting.
Source: theportugalnews.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.
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