The Secretary of State for Tax Affairs, Cláudia Reis Duarte, admitted this Tuesday in Lisbon that the reduction of VAT to 6% on the construction of housing for sale or rent is naturally conditioned by the European legal framework. The official explained that the European legal framework only allows for a reduced VAT rate to be established for construction.
6% VAT on housing is limited by the European legal framework
Tuesday, 24 March 2026RSS
Context & Explainers
VAT is Value Added Tax (Imposto sobre o Valor Acrescentado), a consumption tax charged at each stage of production and sale; the standard mainland rate in Portugal is 23%. Parliamentary proposals to cut VAT on bottled gas from 23% to 6% would directly reduce consumer prices if approved.
