TVA réduite à 6 %. Une mesure qui pourrait transformer la construction et la rénovation au Portugal

The reduction in VAT from 23% to 6% on the construction and renovation of properties for sale or rent may be the most impactful measure in the new housing package. This change, still awaiting parliamentary approval, has the potential to alter costs, deadlines and investment decisions in a sector marked by tight margins and lengthy processes.

The VAT reduction represents a real opportunity to accelerate projects that were stalled due to lack of economic viability.

It reduces the final cost for builders, creates better conditions for new investments and strengthens the competitiveness of interventions in consolidated urban areas, where renovation is the only sustainable alternative.

This measure may also bring the Portuguese market closer to European practices, where reduced VAT regimes are used to promote affordable housing and revitalise urban centres.

For investors and developers, the impact is clear. It makes operations viable, improves margins and helps to create a supply that meets the real needs of families. For the State, it represents a direct stimulus to construction and rental, with a positive impact on the balance of the housing market.

At MBM Company, we analyse these changes with architectural, economic and strategic rigour. The combination of a favourable tax framework with simplified processes opens the way for faster decisions and more solid projects.

Do you know how this measure works in practice?

Simply put, reduced VAT applies only when the property is intended for sale or rental at moderate prices and when the developer meets specific criteria defined by the Government. Application depends on the legal framework and certification of the project.