Portugal Gazettes Decree-Law Implementing Housing-Supply Tax Incentives

The Portuguese Official Gazette May 20 published Decree-Law No. 97/2026, implementing housing-supply tax incentives. The decree-law includes measures: 1) applying a reduced 6 percent VAT rate to qualifying works relating to urban development operations, in cases where the procedural initiatives begin between Sept. 25, 2025, and Dec. 31, 2029, and where VAT liability arises from Jan. 1, 2026; 2) providing a progressive increase in the annual deduction limit for rent paid by tenants under residential lease agreements, with an increase to 900 euros (US$1,043) for 2026, and 1,000 euros (US$1,159) from 2027; 3) excluding capital gains on real estate from ...