Property: Tax law news in Portugal

Had a baby? Tax authority blocks capital gains tax exemption on home sales within one year

IMT Jovem: property inheritances and donations prevent access to home purchase exemption

Supreme Court blocks tax on undivided inheritances, but Tax Authority maintains standoff

Parliament to simplify capital gains exemptions in housing: "it is nothing more than a clarification for dummies," says IL

The goal is to prevent the tax authorities from having incorrect interpretations and charging tax unduly.

6% VAT in construction risks litigation

Former Secretary of State for Tax Affairs Sérgio Vasques believes that Portugal has managed the housing and urban rehabilitation VAT file “in a very, very amateur way,” creating paralysis.

6% VAT on renovations only applies to tax due from 2022 onwards

The new law clarifying the application of 6% VAT on construction work in urban rehabilitation areas since 2009 only applies to tax due from 1 January 2022, according to the Order of Accountants. In an opinion released this Monday, the day Law no. 48/2026 was published...

New legislation clarifies 6% VAT rules for urban rehabilitation with retroactive effect from 2009

Legislation published this Monday in the Diário da República comes into force this Tuesday, August 18th.

Clarification on 6% VAT for rehabilitation works published in the Diário da República

A new law confirming a 6% VAT rate for renovation projects in urban rehabilitation areas (ARU), even without an urban rehabilitation operation (ORU), was published this Monday in the Diário da República, with retroactive effect to 2009. The legislation resolves past disputes between January 2009 and October 2013, where builders were denied the reduced VAT rate because local municipalities had not approved an ORU. The law provides an authentic interpretation of the VAT Code, ensuring that all urban rehabilitation works within legally defined ARUs qualify for the 6% rate, regardless of whether an ORU was approved. This measure addresses tax assessments issued by the Tax and Customs Authority (AT) that had previously demanded the standard 23% VAT rate on completed projects.

IMI rates increases of up to 920% reach Constitutional Court

Portugal’s Constitutional Court is to rule on property tax increases of up to 920% imposed on unused building plots in areas facing acute housing pressure. The issue has reached the The post IMI rates increases of up to 920% reach Constitutional Court appeared first on Portugal Resident.

Real estate-rich share transfers: how CJEU’s Nova Iberomoldes ruling impacts Portuguese RETT

International Tax Review10 Aug

The broad interpretive power of the Tax Authority

In recent weeks, two widely publicised decisions have sparked a debate that extends far beyond the specific matters at hand. In one case, the Tax and Customs Authority (AT) took the view that the partial use of a home for remote work could jeopardise the capital gains tax exemption provided for primary and permanent residences. In the other, an arbitration court...

Rental deposits are exempt from IRS, arbitration court rules for the second time

Another taxpayer wins against the Tax Authority, which had issued a 192,000 euro IRS tax bill due to a commercial lease. The government intends to abolish the limit on the value of security deposits.

Arbitration court rules against Tax Authority again regarding taxation of rental deposits

For the second time, the Administrative Arbitration Centre (CAAD) has ruled against the Tax and Customs Authority (AT) in a new decision favouring a taxpayer on the issue of whether rental deposits should be taxed, as reported by Jornal de Negócios. 'The deposit is not an actual income, since it does not have as its cause, foundation...'

Is the tax authority taking revenge on those who work from home?

Those who use part of their home for work may be prevented from using capital gains from the sale of their property to purchase a new one. Tax experts Luís Leon and Carlos Lobo explain what is at stake.

Clarification of 6% VAT on rehabilitation works approved in committee

Parliament today approved in committee a PSD bill that guarantees the application of 6% VAT on renovation works in urban rehabilitation areas (ARU), even when there is no rehabilitation operation (ORU) in place.

PSD wants 6% VAT on urban rehabilitation areas effective from 2008

PRESS REVIEW || Construction contracts may be subject to a reduced rate provided they are located in an Urban Rehabilitation Area, without the requirement of an approved Urban Rehabilitation Operation. If the bill is passed, it will end ongoing tax inspections and resolve the standoff between the Tax Authority and taxpayers.

Constitutional Court rules against tax authority and extends capital gains tax exemption to homes built with credit

The Constitutional Court (TC) has declared unconstitutional a tax law interpretation that excluded taxpayers from capital gains tax exemptions if they used the proceeds from selling their home to pay off bank loans for building their own residence. The ruling is based on the principle of equality within the tax system.

In the news today: Real estate developers, school meals, and Efacec

Real estate developers who proceeded with construction projects at a 6% VAT rate, supported by declarations issued by municipalities, are preparing to demand in court that the municipalities take responsibility for the high amounts now being demanded by the tax authorities. Read about this and other top stories in the national press this Tuesday. Developers are filing lawsuits against city councils.

Tax authority restricts tax benefits for emigrants selling homes in Portugal

Non-resident taxpayers in Portugal are subject to stricter rules regarding capital gains tax on real estate, being excluded from significant tax benefits such as the reinvestment scheme for primary and permanent residences, according to a recent binding ruling from the Tax Authority (AT) published on the Finance Portal. The interpretation comes in response to a...

Sale of inherited property risks capital gains tax

The sale of a property received through inheritance is subject to personal income tax (IRS) when the asset itself is transferred, rather than the right to the inheritance or the hereditary share, clarifies the Tax and Customs Authority (AT) in a binding ruling published this Monday on the Finance Portal. The interpretation follows a request submitted...