“We welcome the 6% VAT measure for construction across the country, as well as for rental properties,” said Hugo Santos Ferreira, the president of the association, in a statement released today.
The APPII views this announcement as a victory in addressing the “systemic housing problem in Portugal.”
For real estate developers and investors, it’s now crucial to thoroughly examine the announced measures and subsequently work with the government to ensure their swift implementation “without excessive bureaucracy.”
Today, following the Council of Ministers, Luís Montenegro announced that the government will lower the VAT rate to 6% for the construction of homes for sale up to 648,000 euros or, for rentals, with rents up to 2,300 euros—a tax regime that will be in place until 2029.
Additionally, the minimum VAT rate of 6% will also apply to “the construction and rehabilitation of buildings” for rentals up to 2,300 euros.
Founded in 1991, APPII has 250 members, half of which are foreign companies active in the national real estate industry.
