The sale of real estate is subject to real estate tax ('IMT') and consequently is VAT exempt. Real estate property leasing is also VAT-exempt unless the lease includes machinery and other fixed equipment, or is the onerous lease of a commercial or industrial establishment.
However, the seller or the lessor can opt to waive VAT exemption.
Portugal has implemented the option provided in the Principal VAT Directive to introduce a scheme enabling recovery of input VAT on the acquisition of real estate property.
The scheme covers
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Web page updated on 17 Mar 2025 16:59