Is it common when renting an apartment in Lisbon, to be charged an additional 28% for IVA/VAT?
Thanks!
Apartment Rentals and IVA/VAT?
6
3928
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
6
@JohnnyPT Is an IVA the same as a VAT?
(sorry if that's an obvious question - I'm just not familiar with either term)
3928
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
https://www.expat.com/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.
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