Apartment Rentals and IVA/VAT?

Member since 28 November 2022

D P VincentNew member24 January 2023 17:51:31

Is it common when renting an apartment in Lisbon, to be charged an additional 28% for IVA/VAT?

Thanks!

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert24 January 2023 18:27:00

4553

Hi Vincent, Welcome.

Which rental do you refer to?

- Sign a contract between you and the landlord?

In this case, no VAT is charged, that is illegal !!

28% is the tax on rental income that the landlord will pay to the portuguese state...

Now draw your own conclusions....

- Supply of services, like hotel, Arbnb, ...? 23% VAT is charged to you as a customer.

Best Regards

Member since 28 November 2022

D P VincentNew member24 January 2023 20:00:41

@JohnnyPT Is an IVA the same as a VAT?

(sorry if that's an obvious question - I'm just not familiar with either term)

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert24 January 2023 20:09:12

4553

IVA (in portuguese) = VAT (in english)

Rentals are not subject to VAT. You must pay for the rent as advertised. Nothing more.

Some remarks on Rental/Lease Agreement/Contract

(Posts #9 ... #12)

VAT in Portugal

Value Added Tax (VAT) is a tax levied on sales or supplies of services in Portugal.

Rentals are not a sale or supply of a service.

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