Cutting construction VAT to 6% — applicable to homes sold below €648,000 or rented for
up to €2,300 — is, in theory, a good measure. In practice, warns Rafael Ascenso, Founder and Partner at Porta da Frente Christie's, in an opinion piece for Forbes Portugal, limiting it to certain sale or rent values creates "ideal conditions for fraud and legal workarounds".
The argument rests on an operational detail: VAT is incurred from the start of the build, long before it is known at what price the units will actually be sold. Ascenso argues the reduced rate should therefore apply to all housing construction, without exception — and stresses that regulatory uncertainty carries a real cost, reflected in investment levels and in the final price paid by buyers.
Published in Forbes Portugal, March 12, 2026.
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