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Apartment Rentals and IVA/VAT?

D P Vincent

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


Thanks!

See also

Real estate listingsBuying property in PortugalAccommodation in PortoAccommodation in LisbonBuying property in PortoReal estate agencies in PortugalReal estate brokers in Portugal
JohnnyPT

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

D P Vincent

@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

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

/forum/viewtopic.p … 93#5075332

(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.