Madeira Government creates support to cover VAT for social and health institutions under the Recovery and Resilience Plan
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:
- Investment RE-C03-i03-RAM - "Strengthening Social Responses in the Autonomous Region of Madeira".
- Investment C01-i05-RAM - "Strengthening the Regional Health Service of the Autonomous Region of Madeira".
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:
- For projects under Strengthening Social Responses (RE-C03-i03-RAM), applications are formalised with the Regional Secretariat for Inclusion, Labour and Youth (SRITJ).
- For projects under Strengthening the Regional Health Service (C01-i05-RAM), applications are formalised with the Institute for Health Administration, IP-RAM (IASAÚDE).
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.
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