Property: Taxation news in Portugal

VAT clarification in urban rehabilitation

EDP dam sale business risks paying double IMT and Stamp Duty

VAT, housing and bananas: the JPP's bets for 2027

The party led by Élvio Sousa wants a 3-point reduction in VAT, programme contracts for housing, and a minimum price of €1.36/kg for extra-quality bananas.

Press review: Housing crisis, unclaimed bodies and coercive collection of school meal debts

Expresso highlights this Friday that it will take 10 years to resolve the housing crisis, citing a shortfall of 300,000 homes estimated by the Bank of Portugal. The paper also reports on 206 unclaimed bodies in Lisbon this year, including 15 children. Nascer do Sol notes that non-resident foreigners will lose free access to the National Health Service. Público focuses on the Brazilian presidential elections and reports that the INEM budget will grow by 30%, though it remains dependent on insurance yet to be approved. Jornal de Notícias covers municipalities using tax authorities to coercively collect unpaid school meal debts. Correio da Manhã reports on a bankruptcy scheme involving lawyer Paulo Topa, who allegedly profited over 9.5 million euros from a failed real estate company. Diário de Notícias highlights the first use of an automated system for medical specialty residency placements, noting that glitches are causing distrust. Negócios reports on the Court of Auditors' warnings regarding tax breaks for skilled foreign workers, and Eco notes that Unbabel investors are at risk of losing tax benefits.

PS proposes capital gains exemption on house sales up to 300,000 euros

The Secretary-General of the Socialist Party (PS) will propose further housing measures to the Government, such as an exemption from capital gains tax on the sale of existing homes up to 300,000 euros for primary residences. In an opinion piece published this Monday in the newspaper Público, José Luís Carneiro notes that the Socialist Party (PS) had previously sent a...

Chega wants an “emergency legislative package” for housing

André Ventura proposes ending tax benefits for foreigners, higher IRS deductions for housing expenses, and a re-evaluation of the Municipal Property Tax.

OE2027 confirms Government housing policy despite drop in IMI and IMT revenues

The State Budget proposal for 2027 (OE2027), submitted this Thursday, October 8, to Parliament, confirms the continuation of the housing policy measures of Luís Montenegro's government. However, the document forecasts a decline in IMT and IMI revenues in 2027. Incentives for young people up to age 35 to purchase homes remain, and the Porta 65 program is reinforced. Landlords will see an IRS reduction on rents up to 2,300 euros per month, while developers and builders will see VAT reduced to 6% for moderate-priced housing. The fiscal impact for landlords is 209 million euros. Companies providing housing to employees will again benefit from tax depreciation, and employees using such properties will be exempt from IRS and social security contributions. The government commits to continuing the exemption of Municipal Property Transfer Tax (IMT), stamp duty, and fees for first-time home purchases by those under 35, and plans to maintain the public guarantee for mortgage credit for this demographic. These measures have already reached nearly 120,000 young people. The proposal updates IMT brackets by 2.3%, raising the exemption threshold for young people to 338,141 euros. Above this amount, an 8% rate applies up to 676,185 euros. The 2.3% update also raises the general IMT exemption threshold for property transactions to 108,792 euros. Regarding property tax revenue, the bill anticipates a 2.3% drop in IMT and a 5.6% drop in IMI revenue.

Order of Accountants warns that VAT reduction in construction may not lower prices and anticipates problems with the Tax Authority

The reduction could be a “huge risk for developers” due to the wide range of possible interpretations

The people are the ones who pay

Two agreements have been made public that penalise taxpayers.

Year Zero of Housing: from financing to taxation. Watch the JE and CMS Portugal conference

An overview of the conference hosted by Jornal Económico and CMS Portugal discussing the current state and future of the housing sector.

Jornal Económico26 Jun

Brussels suggests Portugal increase IMI to curb vacant homes

The European Commission suggests that Portugal update the property value of homes to increase recurring taxes, specifically the Municipal Property Tax (IMI), to encourage owners to put houses on the market and promote residential mobility. It also suggests the temporary allocation of subsidies to the most vulnerable families in the face of...

Wake for the Constitution

There are countless examples of the daily violation of the Constitution.

Portugal’s increased IMI on ‘vacant’ properties: when housing policy crosses constitutional line - International Tax Review

International Tax Review20 Apr

Property owners oppose OECD proposal: "Raising taxes does not resolve the crisis"

Property owners reject the OECD's proposal, arguing that raising taxes does not resolve the crisis.