The housing legislative package approved by the Portuguese government introduced the application of a reduced VAT rate (6%) to the transfer of new homes for primary and permanent residence, under certain conditions of value and typology. The measure aims to encourage the construction of housing at more affordable prices and reduce the acquisition cost for first-time buyers.
Who Can Benefit
The reduced rate applies to new homes intended for primary and permanent residence, provided the acquisition value does not exceed certain thresholds defined in the legislation. Luxury homes or those intended for investment or rental are excluded from the benefit.
Impact on Final Price
The reduction in VAT from 23% to 6% represents a potentially significant saving in the purchase of a new home. For a €300,000 apartment, the VAT difference can amount to tens of thousands of euros — depending on how the promoter structures the sale price.
Attention to Conditions
The practical application of the measure depends on the legal structure of each transaction — not all new homes are transferred with VAT (some are subject to IMT). It is recommended to consult a lawyer or specialised accountant before assuming the benefit applies to a specific property.