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An exceptional regime has been published to help social solidarity institutions and equivalent entities bear the cost of non-recoverable VAT on projects funded by the Recovery and Resilience Plan.
The Regional Government of Madeira has published Ordinance No. 522/2026, which establishes the rules for an extraordinary financial support measure aimed at covering the Value Added Tax (VAT) borne by social and health institutions. The measure, called "VAT Support PRR-RAM", aims to alleviate the tax burden on these entities in the context of implementing projects co-financed by the Recovery and Resilience Plan (RRP).
The support specifically covers projects under two RRP investments in the Region:
Eligible to apply for the support are private social solidarity institutions and legally equivalent entities with headquarters or activity in Madeira, such as misericórdias, social and parish centres, foundations, mutual associations, social solidarity cooperatives, and community centres. The support is intended to cover the VAT effectively borne and non-recoverable on expenses such as construction works, supervision, projects, and equipment acquisition for these investments.
The maximum overall amount authorised for this support is €5,384,038.00, as established by Ordinance No. 428/2026. Initial applications must be submitted within 20 working days after the entry into force of this ordinance (12 September 2026), to different entities depending on the investment:
The regime applies retroactively to VAT borne on eligible expenses incurred from 1 February 2020, provided they are within the project's eligibility period. The ordinance is in force until 31 December 2027.
The Madeira Regional Government has amended the unit rates of the Tax on Petroleum and Energy Products (ISP), effective from September 14, 2026.
Ordinance No. 518/2026 increases financial support to compensate for non-recoverable VAT for social institutions and expands the scope to include projects of the Regional Health Service funded by the Recovery and Resilience Plan (PRR).
A joint ordinance from the regional secretariats of Finance and Equipment authorizes the budgetary redistribution of 19,800 euros to cover services for monitoring a court case related to the embargo of the Ponte Nova construction project.