Apartment Rentals and IVA/VAT?

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


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

@JohnnyPT   Is an IVA the same as a VAT? 

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

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.

https://eportugal.gov.pt/en/cidadaos-eu … m-portugal