The article outlines how corporate income tax (CIT) and VAT planning, vehicle selection, and structuring choices can materially affect returns on Portuguese real estate investments. It highlights Portugal’s progressive CIT rate reduction, the special tax regime for SICs, and the conditions under which VAT exemptions can be waived to enable VAT recovery while preserving CIT benefits.

The UK First‑Tier Tax Tribunal ruled on 16 December 2025 that photography costs used for product catalogues and an online store by an online retailer with integrated financial services are fully recoverable input VAT, as they are used for taxable retail supplies. The decision clarifies that such costs are not partially recoverable due to mixed use with exempt financial services.

The UK First‑Tier Tax Tribunal clarified that caregivers supplied to nursing and residential care homes are not VAT‑exempt unless they are registered medical professionals or supervised as required. The tribunal found that the taxpayer's services did not meet the exemption criteria and no other exemptions applied. The decision was issued on 16 December 2025.