6% VAT on urban rehabilitation works: new Law no. 48/2026 establishes that location within an Urban Rehabilitation Area is sufficient

Recently published Law no. 48/2026, of 17 August, provides an authoritative interpretation of item 2.23 of List I annexed to the Value Added Tax Code, with effect from 1 January 2009.

Accordingly, urban rehabilitation works carried out on properties located within Urban Rehabilitation Areas are now subject to the reduced VAT rate of 6%, regardless of whether an Urban Rehabilitation Operation has been approved.