Digest · Tuesday 6 October 2026
This week: 6% VAT on rehab works, a warning on property values, and the budget run-up
Five things that moved for foreign-owned companies in Portugal, each marked as law, proposal or for information. A quiet week in the Diário da República; the 2027 budget bill is due in Parliament by 12 October.
Added on 3 November 2026 to complete the archive; it reports what was known on 6 October 2026.
1 Oct
6% VAT on urban rehabilitation works no longer needs an approved ORU In force
The tax authority (AT) has published its instructions on Lei 48/2026, which gives a binding interpretation of the 6% rate for urban rehabilitation works (item 2.23 of List I of the VAT Code, in its 2009–2023 wording) with effect from 1 January 2009. Works on buildings in a legally delimited urban rehabilitation area (ARU) qualify without an approved rehabilitation operation (ORU), as long as the ARU has not lapsed. The AT will drop corrections based only on the missing ORU and accepts that ex officio review (revisão oficiosa) is open; projects still under the transitional rule of Lei 56/2023 benefit too.
Separately, on 1 October the accountants’ professional body (OCC) sent the Prime Minister an open letter warning that the new 6% rate for housing construction (item 2.42.1, added by Decreto-Lei 97/2026) is likely to produce disputes with the AT in two or three years.
Who it affects: Developers, property companies and anyone who paid or self-assessed 23% on rehab works in an ARU. A contractor’s credit note needs proof that you were reimbursed (art. 78.º(5) CIVA); reverse-charge recipients can correct the rate themselves within four years.
Source: Ofício-circulado 25121/2026; DNotícias / Lusa (press, OCC letter)
29 Sep
Constitutional Court: contest a property valuation on time, or not at all For information
Ruling 665/2026, published on 29 September, upholds the reading of art. 78.º(4) and (5) of the General Tax Law under which ex officio review cannot be used against IMI or AIMI assessments on the ground that the underlying tax value (VPT) was wrong, if the valuation could have been challenged on its own and was not. The VPT has to be contested through its own route, such as a second valuation requested within 30 days of notification (art. 76.º(1) CIMI).
Who it affects: Companies that own Portuguese property: they pay IMI every year, and AIMI on residential property and building land. A VPT notice after a purchase, works or a reassessment is the moment to check the figure.
OE2027
Budget 2027: the government briefs the parties; the bill is due by 12 October Proposal
The Finance and Parliamentary Affairs ministers presented the outline of the 2027 budget to every parliamentary group between 28 and 30 September. The legal deadline is 10 October, a Saturday, so the bill can be submitted until Monday 12 October; the general debate is set for 27–28 October and the final vote for 24 November. A €970 minimum wage for 2027 is the figure in the 2024 social partners’ agreement and still needs its annual decree-law. Nothing in the budget is law until it is published.
Update 3 Nov: The bill was submitted on 8 October as Proposta de Lei 110/XVII and passed the vote on general principles on 28 October; the final vote is still 24 November. What it contains is in our 20 October issue.
Who it affects: All companies planning 2027 costs and payroll.
Source: Portal do Governo; DN (press, timetable)
30 Sep
Inflation rises to 3.6% in September For information
INE’s flash estimate puts annual consumer price inflation at 3.6% in September, up from 3.3% in August, driven mainly by fuel: energy prices were 15.4% higher than a year earlier. Core inflation, excluding energy and unprocessed food, was 2.7%. Average inflation over the last twelve months is estimated at 2.8%.
Update 3 Nov: INE confirmed 3.6% on 13 October. Its flash estimate for October is 3.8%.
Who it affects: Employers setting 2027 pay, and companies with leases or contracts indexed to the consumer price index.
Source: INE flash estimate, via Lusa (press)
30 Sep
ETIAS travel authorisation now expected in 2027 For information
The EU had aimed to launch ETIAS, the online pre-travel authorisation for visa-exempt visitors to the Schengen area and Cyprus, in the last quarter of 2026. Member-state guidance now says it is planned for 2027; the EU has not yet published a start date. Once live, an authorisation will last three years or until the passport expires, and will be needed for short stays of up to 90 days in any 180.
Who it affects: Founders, directors and visiting staff from visa-exempt countries such as the US, the UK, Canada and Brazil. Holders of a Portuguese residence permit will not need it.
Source: Embassy of Poland in the UK (gov.pl); no EU date yet
What to do this week
- File September’s invoice data with the AT today: the 5 October deadline moved to 6 October because of the public holiday.
- Payroll: companies not yet on the new social security cycle file the monthly remuneration declaration by 12 October; those already on it confirm the pre-filled figures by 20 October. Contributions are payable by 26 October. The new cycle becomes compulsory for all employers on 1 January 2027, so plan the switch with your payroll provider. Our first-hire guide sets out the employer’s monthly cycle.
- If your company has paid 23% VAT on rehabilitation works in an ARU since 2009, have the invoices reviewed: depending on the year and how the VAT was charged, ask the contractor for a credit note, correct VAT you self-assessed, or file for ex officio review.
- If you hold property, check every VPT notice when it arrives: a second valuation must be requested within 30 days. Our property taxes guide explains how the VPT drives IMI, AIMI and IMT.
Not sure which of these touches your company?
Send us your structure and we will tell you, in a paragraph, what this week means for you and what to do before which date.