Land IMT (terrenos para construção / other urban property, resident buyer)6.5% flatIllustrative — flat, non-progressive band under the Código do IMT for land/other urban property, distinct from the progressive habitação-própria table. Land-for-development classification varies by case — confirm with your notary. As of Aug 2026.
Non-resident buyer IMT (residential)7.5% flatFlat rate for non-resident buyers of residential property. As of Aug 2026.
Resident habitação IMT — reference onlyup to 8%Progressive bands top out at a marginal ~8% between roughly €330,539–€660,982 of taxable value. Shown for reference; this tool applies the flat land rate above, not this table, since the scenario is land-for-construction. As of Aug 2026.
Stamp duty (Imposto do Selo) — transaction0.8%Código do Imposto do Selo, Verba 1.1 — of the higher of price or VPT. As of Aug 2026.
Stamp duty on loan / credit grant0.6%Código do Imposto do Selo, Verba 17.1 — applied to the bank loan amount in Model A. In Model B, applied only under the "worst-case" tax toggle. As of Aug 2026.
Construction VAT — standard23%CIVA Art. 18 standard rate. As of Aug 2026.
Construction VAT — reduced (qualifying)6%2026 housing package: qualifying residential construction/rehabilitation, sale price ≤ €648,000 or rent ≤ €2,300/month, for projects initiated 25 Sept 2025 – 31 Dec 2029. Toggle below — not folded silently into the default. As of Aug 2026.
Construction VAT reclaimabilityNot reclaimedNew-build residential sales are typically outside VAT scope (buyer pays IMT/stamp duty instead), so input VAT on construction is generally not recoverable — modelled as a real cost, not double-counted against sale-side VAT. As of Aug 2026.
IMI — annual municipal property tax0.3%–0.45%Código do IMI Art. 112 range for urban property; the specific rate is municipality-set. Default 0.35% of estimated VPT (approximated here as land + construction cost). As of Aug 2026.
IRC — mainland general rate19%Código do IRC Art. 87. Reduced 15% on the first €50,000 of taxable income for qualifying SMEs (Madeira/Azores rates are separately reduced — not modelled here). As of Aug 2026.
IRS — capital gains inclusion (Category G)50% includedCIRS Art. 43(2) — only half the gain enters taxable income, then taxed at marginal IRS rate (2026 bands run roughly 13%–48%). Primary-residence reinvestment exemption not applied by default — unlikely to fit a development-for-sale scenario. As of Aug 2026.
IRS — rental income (Category F, individual)28% flatTypical autonomous flat rate on rental income under CIRS Art. 72; aggregation with other income is an alternative not modelled here. As of Aug 2026.
Bank development loan interest rateenter your quoted rateNo default is asserted as settled — construction/development loan pricing moves with Euribor and lender risk pricing and has recently spanned a broad band. Enter your own quoted rate. As of Aug 2026.
Loan arrangement fee1–2%Typical market range for development finance arrangement fees, illustrative. As of Aug 2026.
Construction cost per m²€1,400–€2,200Illustrative range for standard residential build quality in Portugal — varies too much by spec to hardcode confidently. As of Aug 2026.
CBLT tax-timing positiondeferred to burnTax timing — the canonical position. CBLT is a deferred, conditional claim, not a cash payment. Minting CBLT and any intermediate transfer of it — including a milestone release — are not tax events: no income is recognised and no VAT applies at that point. Both income recognition and VAT arise once, at the burn event, when CBLT is actually redeemed for a real good, service, or right of use. This is what allows CBLT to function as a Multi-Purpose Voucher under EU Directive 2016/1065 (see What Is CBLT?) — the tax event tracks consumption, not production. This is general information, not tax advice; treatment varies by jurisdiction and circumstances — consult a qualified tax adviser for your specific situation.