Madeira signals 2027 tax measures for companies and controlled-cost housing
The regional president says the draft 2027 budget will lower the main IRC rate to 12.6%, retain 4% VAT for controlled-cost housing construction and continue the regional IRS differential.
Archived after its publication day. Search retains this original briefing for background and accountability.
Archived 12 September 2026These are announced budget intentions, not yet final rates for every taxpayer or building project. Eligibility and effective dates depend on the approved Regional Budget and implementing rules.
- The announced 4% VAT concerns controlled-cost housing construction, not every residential project.
- The stated main regional IRC rate is 12.6% for 2027.
- The Government intends to retain a 30% regional IRS differential in the applicable new brackets.
The housing VAT scope is limited
The announcement links the 4% rate to construction at controlled cost. A purchaser, contractor or developer should not apply it to a project merely because the end use is residential.
The regional president also cited €179 million of current affordable-housing investment and a regional fund for further homes. Those programme claims do not create an individual entitlement.
Budget approval still matters
The Regional Budget is still being prepared. Final rates, brackets, transitional rules and effective dates can change through approval and publication.
Businesses should model tax only after confirming the applicable Madeira regime, taxable period and any reduced-rate conditions. Households should use the final withholding tables and annual rules rather than a speech figure.
What you can do now.
- 01
Wait for the approved 2027 Regional Budget and published tables.
- 02
Confirm whether a housing project meets controlled-cost conditions.
- 03
Obtain individual tax advice before pricing a contract or investment.
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