Hugo Leonardo has published an article titled ‘VAT in Construction: Challenges and Prospects’ in Advocatus, in which he analyses the main obstacles and opportunities associated with the VAT regime applicable to the construction and urban regeneration sector in Portugal.

The article emphasises the importance of establishing a clear, stable and attractive tax framework, particularly in a context where the need to increase the supply of both public and private housing is widely acknowledged.

In particular, it highlights the impact of the non-deductibility of VAT on housing construction, which constitutes a direct cost for developers and, ultimately, for the end consumer.

The VdA lawyer also outlines possible solutions to stabilise the regime, including the issuance of an interpretative circular by the Tax Authority and a revision of the tax incentive system. He proposes aligning the framework more closely with current housing needs, including projects outside officially designated Urban Rehabilitation Areas that nevertheless contribute to urban regeneration.

• The full article is available here.