After being approved by the Parliament, the Bill presented by the Government under the “Mais Habitação” Program was sent to the President of the Republic for promulgation. Under this program promoted by the Government, Extraordinary Contribution, Stam Duty, and VAT have undergone relevant changes that we summarize below.

Creation of an extraordinary contribution

  • An extraordinary contribution on local accommodation is created in the amount of 15% to be allocated to the Institute of Housing and Urban Rehabilitation (IHRU) to finance affordable housing policies and which varies according to the operating income, the evolution of rents and the weight of Local Accommodation in the Zone.
  • The coefficients will be published annually by Government ordinance.
  • CEAL is not deductible for the purpose of determining taxable profit under Corporate Income Tax (“IRC”).
  • The CEAL will be assessed by 20 June and paid by 25 June of the year following the taxable event.
  • Properties located in inland territories, as well as in parishes where there is no evidence of housing shortage, are excluded from CEAL.

Stamp Duty (IS)

  • Housing lease contracts under the Rental Support Programme are exempt from Stamp Duty, as well as contracts entered into under public housing programmes promoted by entities with competence in the area of housing in the autonomous regions.

Value Added Tax (VAT)

  • Construction or rehabilitation works of affordable housing, controlled cost housing or housing for affordable rental are subject to a reduced VAT rate, under the terms defined in an ordinance of the member of the Government responsible for the housing area, regardless of the promoter, provided that at least 700/1000 of the buildings in horizontal property, or the totality of the buildings in total property or autonomous fractions, is allocated to one of these purposes and certified by IHRU, I. P., or, when promoted in the Autonomous Region of Madeira or in the Autonomous Region of the Azores, by Investimentos Habitacionais da Madeira, EPERAM (IHM) or by the Regional Housing Directorate of the Azores, respectively.
  • The same applies to building rehabilitation contracts, as well as contracts for the construction or rehabilitation of public collective use equipment, located in urban rehabilitation areas (critical areas of urban recovery and conversion, intervention areas of urban rehabilitation societies and others) delimited under the legal terms, or within the scope of requalification and rehabilitation operations of recognized national public interest.

Tax Department

Sofia Quental | Flávia Almeida | Catarina Amaral