2-3 minutes Circular Letter No. 25118, dated 22 July 2026, clarified the new rules governing the partial refund of VAT paid by individuals when building their own primary and permanent residence. This regime does not allow the contractor to apply the reduced VAT rate directly. Instead, the individual pays VAT at the standard rate (23%) and, once construction is completed, may […]
2-3 minutes For several years, construction companies, real estate developers, and property owners applied the reduced VAT rate to rehabilitation works carried out on properties located within Urban Rehabilitation Areas. However, the Tax Authority began to argue that a property’s location within an Urban Rehabilitation Area — ARU — was not sufficient. Prior approval of an Urban […]
4-5 minutes International mobility has made successions involving several countries increasingly common. This is the case of a foreign citizen who resides in or owns property in Portugal, a Portuguese citizen residing abroad, or a family whose heirs, bank accounts, company shareholdings, and real estate are spread across different States. These situations are particularly common […]
2-3 minutes The Housing Package (Pacote Habitação) created a scheme for the partial refund of VAT paid by individuals when constructing their own permanent home. On the mainland, the benefit generally corresponds to the difference between the VAT paid at the standard rate of 23% and the amount that would result from applying the reduced […]
2-3 minutes Rental Deductions on IRS: How Much Can You Deduct in 2026 and 2027? Tenants can deduct 15% of the rent paid for their permanent home from their IRS tax due. Under the Housing Package (Pacote Habitação), the general annual limit for this deduction increases to: This increase can lower the amount of IRS […]
2-4 minutes Real Estate Capital Gains: Can You Reinvest in a Rental Property? Since January 1, 2026, certain capital gains obtained from the sale of residential properties may be excluded from personal income tax (IRS) when the sale proceeds are reinvested in the purchase of properties intended for moderate-rent residential leasing. This is a significant […]
2-3 minutes Controlled-cost housing: what tax benefits exist? The Housing Package created tax benefits for the first acquisition of controlled-cost housing intended exclusively for permanent, own-use residence. The purchase may qualify for an IMT exemption or reduction, and a deduction on Stamp Duty. However, these benefits are not automatic and depend on the property, the […]
5-6 minutes IMT in corporate restructurings: what did the Court of Justice of the European Union decide? The Court of Justice of the European Union has ruled that Portugal cannot charge Property Transfer Tax, known as IMT, on a corporate restructuring with the characteristics of the Nova Iberomoldes case solely because one of the companies […]
IMT for non-residents: when does the 7.5% rate apply? The purchase of a property intended exclusively for housing by a non-resident buyer is now, as a rule, subject to an IMT (property transfer tax) rate of 7.5%. In this situation, the exemptions or reductions provided for the purchase of a primary residence do not normally […]
With the residential rental market under heavy pressure across the country, especially in the south, the new Simplified Affordable Rental Regime (RSAA) emerges as an extremely powerful tax tool for private landlords and real estate companies. This model, which comes fully into force on September 1, 2026, definitively replacing the old Affordable Rental Program, offers […]