Latest news and stories about vat reduction in Portugal for expats and residents.
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Home Property Building Portugal at 6 (%) VAT rate – The Three King’s Gift? Building Portugal at 6 (%) VAT rate – The Three King’s Gift? Embracing the Christmas season’s spirit of giving, the Portuguese Government submitted, on 2nd December the, Proposal No.

Home News Which products will have a VAT reduction? Which products will have a VAT reduction? With the entry into force of the State Budget for 2026 (OE2026), a reduced VAT will be applied, lowering to 6%, in some cases.

On December 2, the government submitted a bill to the Assembly of the Republic to reduce VAT on construction. The measure still needs to be approved by parliament and may be subject to changes. However, some details are already known. In this episode, we explain how the government intends to implement the measure. Listen to the podcast here.

The Government is betting on a fiscal shock to attract real estate investment, but will reducing VAT and creating incentives be enough to solve the housing crisis and make renting affordable?

Surprised by the scale of the housing problem in the European Union, the Spanish MEP, who is the rapporteur in the committee set up to study the housing crisis, acknowledges that more needs to be built.

Until March of this year, there was a belief among real estate companies that the application of the reduced VAT rate of 6% on contracts related to urban rehabilitation only required the properties in question to be located in designated urban rehabilitation areas (ARU). However, this belief has changed, especially since...

The government proposes a VAT reduction only for “urban planning operations whose procedural initiative” was started on 23 September 2025. The government's bill does not guarantee that the homes in question are for rental or for permanent residence.

The proposed law to reduce VAT on the construction of houses for sale or rent at moderate prices was submitted to parliament today, giving the tax authority 150 days to refund the difference between the 23% VAT and the 6%.
Among the measures in the new legislative package for housing, the Government proposes a tax benefit to reduce the VAT on construction or rehabilitation of homes from the current 23% to 6% if the projects are sold or rented at 'moderate prices' within two years of the issuance of the usage license. The use ...

A review of the press highlights that families have saved 345 million euros on property tax (IMI), while the proposed VAT reduction for the construction sector could potentially breach European legislation.

The government wants to reduce the VAT on housing construction to 6%, a measure that, if approved, will cover the vast majority of the market, which may violate European tax law.

The Council of Ministers has approved a tax cut in construction and rental, reducing the rate from 23% to 6%, a measure valid until 2029 aimed at promoting affordable housing.

The government approved two legislative authorization proposals on Friday with additional measures to mitigate the housing crisis. The Council of Ministers gave the green light to two bills aimed at reducing bureaucracy through the new Legal Regime of Urbanization and Construction (RJUE) and tax reductions.
