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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 PortugalBuying property in PortoAccommodation in PortoAccommodation in Lisbon
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.