- Portugal is introducing a temporary 6% VAT rate for qualifying residential construction and rehabilitation contracts.
- The reduced rate applies to VAT due from July 1, 2026, to December 31, 2032, if the planning process began between September 2025 and December 2029.
- Eligibility is limited to homes sold for about €661,000 or rented for up to €2,300 per month.
- Parliament is also considering a bill to clarify that a legally delimited ARU alone is enough to qualify for the old 6% VAT rate, without requiring an approved ORU.
- That bill was unanimously approved at first reading on July 3, 2026, and would apply retroactively to 2008 to settle disputes and tax reassessments.
Source: internationaltaxreview.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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