Effective Date: Still Under Discussion
Type: Legislation
The Portuguese government is evaluating a proposal to reduce the VAT rate on art sales from 23% to 6%, aiming to align with European counterparts such as France, Germany, and Italy. The measure, discussed by the Ministry of Finance in late 2025, seeks to boost the competitiveness of Portuguese art galleries and support local artists through a more favorable tax environment. Currently, only artists selling their own works benefit from the reduced rate, while gallery transactions remain subject to the standard 23% VAT. Although the proposal was not included in the 2025 State Budget, discussions are ongoing within the framework of EU VAT harmonization. A decision on the implementation timeline is expected in future fiscal updates.
To keep updated on news, visit our Tax Technology Alerts.
Don’t miss our most recent updates and articles; follow us on LinkedIn.
Find out more about our Transfer Pricing Services.
