From now on, if your company awards a construction contract and the contractor does not hold a valid contractor's license (alvará) or construction certificate issued by the IMPIC, the VAT reverse charge rule (IVA - Autoliquidação) no longer applies. This is the change with the highest immediate impact on daily operations and company cash flow, introduced by the newly approved Housing Package (Decree-Law no. 97/2026). Many companies became accustomed to billing repair, remodeling, or painting services with the mention "IVA - Autoliquidação," even without being formally registered construction firms. The Tax Authority put an end to this practice. For the reverse charge to occur — meaning the service provider bills without VAT and the client assumes tax assessment —, the builder MUST hold a public or private works contractor's license or certificate. If they do not, they are obliged to bill with standard VAT, forcing the entity awarding the work to pay the tax upfront. The second major update in this legislative package is excellent news for real estate promoters and residential leasing businesses. Until now, as entities carrying out exclusively tax-exempt operations (without the right to deduct VAT), these companies always received construction invoices with tax charged upfront by the builder. Under the new law, the reverse charge mechanism now also applies to these tax-exempt companies, but only in a very specific scenario: when contracts are intended for properties for sale (Primary Residence - HPP) or for residential lease framed under the new reduced rate, Item 2.42. In practice, this means the work must respect strict "moderate value" limits, such as charging rents that do not exceed €2,300 per month in 2026. If your residential leasing company awards one of these eligible contracts: The builder (holding the respective IMPIC license) issues the invoice without VAT, stating "IVA - Autoliquidação". Your company, despite not carrying out VAT-taxable activities, must submit a periodic VAT return by the end of the following month to declare and pay this self-assessed tax to the State. The major financial advantage is that this tax is self-assessed directly at the new reduced rate applicable under Item 2.42, drastically lowering the net cost of the construction work.  These rules formally enter into force on July 1, 2026, but can be applied with retroactive effect to invoices issued since January 1, 2026, provided there is mutual agreement between the contractor and the client. As these new rules intersect real estate price caps with formal licensing requirements, an improper reverse charge can be costly in fines and compensatory interest.

The State machine requires speed, and the new Decree-Law no. 177/2026 responds to this urgency with a profound revision of the Public Contracts Code (CCP). Aiming to reduce bureaucracy and stimulate investment, the legislator substantially raised the thresholds allowing public entities to award contracts faster and in a more simplified manner. If your company supplies goods, provides services, or executes public works for municipal councils, public institutes, or ministries, the rules of the game change radically starting October 1, 2026. The difference between the old and new limits opens a massive window of opportunity. Here is what changes in procurement: 1. Acquisition of Goods and Services The caps for purchasing equipment, materials, or service provision (from consulting to cleaning) underwent a very significant increase, allowing the State to use direct invitations for much higher amounts: Direct Award (Ajuste Direto - 1 invitation): The limit jumps from the previous €20,000 to €75,000. Prior Consultation (Consulta Prévia - Minimum 3 invitations): The limit rises from €75,000 to €130,000. 2. Public Works Contracts (Empreitadas de Obras Públicas) In the construction sector, the need to accelerate project execution led the legislator to multiply the margin to avoid lengthy public tenders: Direct Award: It is now possible to directly select a contractor for works with an estimated value below €150,000 (the previous limit was merely €30,000). Prior Consultation: The State can now invite three companies for works whose estimated value falls below €1,000,000 (a substantial leap compared to the old €150,000 cap). 3. The New "Special Prior Consultation" (Consulta Prévia Especial) In addition to the general rise in limits, the decree introduced an accelerated regime for critical and strategic projects. The new "Special Prior Consultation" allows awarding contracts through direct invitation to at least five entities for values up to €2,000,000. This exceptional ceiling applies exclusively to rapid investment fronts, such as: Projects financed by European funds. Promotion of public or affordable housing. Works or acquisitions for the health sector, care homes, and social support. Digital transformation projects (acquisition of software, equipment, and cloud services). 4. Less Paperwork: Exemption from Written Contracts To accompany the rise in limits and ensure execution does not hit contractual bureaucracy, the legislator doubled the threshold where a formal written contract is not required: Goods and Services: The formal contract exemption limit rises from €10,000 to €30,000. Works (Empreitadas - of very low complexity): The limit rises from €30,000 to €75,000. The Opportunity for SMEs: The massive rise in Direct Award and Prior Consultation thresholds represents an excellent opportunity for small and medium-sized enterprises to join the State's supplier pool with far less bureaucratic friction and without the complexity of public tenders. However, direct invitations require your company to be on the "front line," with all professional qualification documents and tax/social security regularity immaculate. If you intend to bill the public sector under these new rules, our team can help you organize your administrative structure and ensure compliance with all CCP requirements. Contact us to prepare your company for the public market.

Although Portugal has finally initiated a downward trajectory for Corporate Income Tax (IRC) rates, the tax burden goes far beyond the percentage applied to profits. According to recent data from the Tax Competitiveness Observatory, managed by Deloitte, around 60% of Portuguese companies still classify our tax system as highly complex and a direct barrier to attracting investment. The Problem Isn't Just the Rate; It's the Complexity The diagnosis shared by managers is clear. Current frustration no longer stems exclusively from the amount of tax payable, but from "compliance costs". Constant legislative instability, the slow pace of tax justice, and the density of regulations demand an administrative effort disproportionate to Small and Medium-sized Enterprises (SMEs). Instead of focusing their energy on innovation, seeking new clients, or business expansion, entrepreneurs feel they are wasting valuable time and resources trying to interpret and comply with the bureaucratic demands of the Tax Authority. Simplify Management with Cooperate This study validates a frustration that many managers experience daily: the system is difficult to navigate alone. The tax machine will not simplify overnight, but the way your company deals with it can — and should — change radically. At Cooperate , we understand that bureaucracy steals your most valuable resource: time. We act as your tax shield and translator. We transform legislative confusion into financial predictability and ensure that your company meets all obligations without setbacks and with maximum tax efficiency. We take on the burden of complexity so that your sole focus is the profitable growth of your business. Speak with us today and bring peace of mind to your management.

W hen climate catastrophes, such as floods or storms, strike a busin ess, the entrepreneur's priority is clear: rebuild the facilities and resume invoicing as quickly as possible. To address this urgency, the Banco Português de Fomento (BPF) has launched the Reconstruction Support Line , introducing unprecedented financial agility. Fast Capital, Immediate Works Available through Commercial Banking, this funding line covers up to 100% of validated losses. Crucially, insurance payments are deducted subsequently, ensuring you do not have to wait for slow appraisal processes before starting reconstruction. The State’s major breakthrough accompanying this funding is the elimination of bureaucratic barriers. To accelerate the start of work, a simplified regime has been created that exempts companies from time-consuming administrative controls, such as standard municipal urban licensing. In practice, this means an end to the frustrating wait for bureaucracy to repair your infrastructure. Speed Requires Banking Preparation However, the exemption from municipal licensing does not negate the rigour required by banks and the BPF. To access this line with subsidised rates and a State guarantee, the documentation of damages, the accounting framework, and the structure of the credit application must be flawless. This is where a strategic financial partner makes the difference. At Cooperate , we understand that in times of crisis, your focus must be on operations and your team. We handle the technical negotiations for you. We help your company structure the validation of losses, prepare the financial dossier required by the Development Bank, and monitor the application swiftly and securely. Do not let a documentation failure delay your fresh start. Contact us today to secure the capital needed to rebuild your business.

During periods of market contraction or intensive investment, reporting a tax loss is a significant management challenge in itself. Historically, legislation placed further strain on cash flow during these critical times: companies reporting a loss faced an automatic 10-percentage-point penalty on Autonomous Taxation (AT) . This applied to daily operational overheads such as company vehicles, subsistence allowances, and representation expenses. The excellent news for the business community is that the 2026 fiscal framework has suspended this penalty. What does this mean for your cash flow? This tax relief ends the "double penalty" long dreaded by business owners. If your company has faced an atypical year—whether due to a drop in sales or a significant financial effort that resulted in an accounting loss—you will no longer be penalised with a disproportionate tax bill on your operating costs. The funds previously earmarked for this extra tax remain in your bank account. This provides vital financial oxygen , allowing you to focus your energy on recovery and the growth of your commercial activity. Safeguard Your Business with Cooperate While legislation provides relief, accounting precision is what truly protects your company. The correct classification of invoices and the rigorous assessment of expenses subject to Autonomous Taxation are essential to avoid complications with the Tax Authority. At Cooperate , we master the tax code to use it in your business's favour. We ensure your cost structure is optimised and that your company benefits from all legal exemptions, protecting your liquidity when you need it most. Contact us today to ensure intelligent, hassle-free tax management.

The uncertainties surrounding the execution of European funds have been resolved. The "Recuperar Portugal" Mission Structure recently submitted a strategic reprogramming of the Recovery and Resilience Plan (RRP/PRR) to the European Commission, guaranteeing 100% execution.