IRS Deductions, VAT in Construction, and IMT IMI Exemptions in 2026.
The taxation of housing in Portugal is currently based on an articulated set of rules under Personal Income Tax (IRS), Corporate Income Tax (IRC), VAT, Property Transfer Tax (IMT) and Municipal Property Tax (IMI), which seek—through taxation—to guide behaviour in the real estate market, from rental at moderate prices to construction and rehabilitation for housing purposes.
The recently approved and announced measures reinforce this logic of convergence between tax policy and real estate law, deepening the regulatory framework applicable to housing and creating special regimes with a direct impact on the structuring of investments and real estate transactions.
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