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PORTUGUESE PARLIAMENT DEBATES REINSTATEMENT OF 6% VAT FOR HEAT PUMPS AND OTHER ENERGY-EFFICIENT EQUIPMENT
JULY | AUGUST / 2025
On July 16, 2025, the Portuguese Parliament reopened the discussion on reinstating the 6% reduced VAT rate for the purchase, installation, and maintenance of heat pumps and other renewable energy systems, including solar panels and efficient climate control solutions.
This reduced VAT measure was previously in force from 2022 to June 2025 but reverted to the standard 23% rate as of July 1, 2025. The new parliamentary discussion may pave the way for the return of the reduced rate, with further details still pending.
The potential reintroduction of the 6% VAT rate is a significant opportunity for consumers and the heat pump sector in Portugal, directly reducing the total cost of ownership and promoting a more sustainable transition.
Expected benefits for the sector and end users:
The reintroduction of the 6% VAT rate could:
- Encourage the energy transition through the adoption of more efficient technologies;
- Stimulate investment in sustainable solutions by businesses and individuals;
- Stimulate investment in sustainable solutions by businesses and individuals;
- Contributes to Portugal’s national decarbonisation and energy efficiency goals.
What’s next?
It is now up to the Government to propose legislation to bring back the reduced VAT. The topic will continue to be closely monitored by industry stakeholders, consumers, and energy and climate institutions.
At ENERGIE, we remain attentive to policy developments and committed to promoting accessible and efficient energy solutions.
