- The Portuguese Government maintains the reduced 6% VAT rate for urban rehabilitation and extends it to certain construction and residential leasing operations.
- The reduced VAT rate applies to owner-occupied homes up to €648,000 and residential leases with monthly rent up to €2,300.
- For self-construction, owners can request a VAT refund for the difference between the standard and reduced rates within 12 months of the use permit.
- The VAT reduction applies to projects started between 23 September 2025 and 31 December 2029, with the regime in force until 31 December 2032.
- The reduced VAT rate for urban rehabilitation requires the property to be in an Urban Rehabilitation Area with an approved operation and proper municipal certification.
Source: belzuz.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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