- Reduced VAT rate (6% mainland, 4% Autonomous Regions) applies to construction or rehabilitation of residential properties for sale or lease, for urbanist operations started between 23 September 2025 and 31 December 2029, until 31 December 2032.
- Properties must be intended for the purchaser’s own permanent residence or for residential leasing.
- Application of the reduced VAT rate is conditional on the sale price and specific requirements.
- For sales: property must be subject to RETT rates for permanent residence and sold within 24 months of documentation issuance.
- For leasing: lease must be VAT-exempt, reported to the Tax Authority, first lease signed within 24 months, and property leased for at least 36 months within the first five years.
Source: taxand.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.
Latest Posts in "Portugal"
- Extension of Reverse-Charge Mechanism for Construction Services to All Taxable Persons in Portugal
- Partial VAT Refund for Individuals on Construction of Primary Residence up to EUR 660,982
- Portugal VAT Return Rules 2026: New Company Responsibilities and Turnover Thresholds Explained
- Portugal 2026: New VAT Declaration Rules Require Businesses to Self-Determine Filing Frequency
- Carlos Lobo Warns: VAT Changes May Trigger Mass Extinction of Urban Rehabilitation Developers
