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The Regional Government Council approved an extraordinary financial support of 5 million euros to cover the non-deductible VAT borne by entities executing projects under the Recovery and Resilience Plan.
The Regional Government of Madeira has approved the creation of a financial support mechanism aimed at alleviating the burden of Value Added Tax (VAT) for entities executing projects financed by the Recovery and Resilience Plan (PRR) in the region. The measure, called 'PRR-RAM VAT Support', aims to ensure that the effectively borne and non-recoverable VAT does not compromise the financial capacity of the entities and the completion of the investments.
The support, approved by Regional Government Council Resolution No. 846/2026, has a maximum global amount of 5,000,000.00 €, to be distributed between the financial years 2026 and 2027. Most of the funds, 4,413,164.00 €, are allocated for 2026, while the remaining 586,836.00 € are planned for the following year.
The scheme applies specifically to VAT effectively borne, non-deductible and non-recoverable by any other legal mechanism or public funding, relating to eligible expenses incurred within the scope of PRR projects. The expenditure for 2026 is included in the budget of the Regional Secretariat for Inclusion, Labour and Youth. The Regional Secretaries for Finance and for Inclusion, Labour and Youth were mandated to regulate the conditions for granting this support through a joint ordinance.
The Region has updated the unit rates of the tax on petroleum and energy products applicable to unleaded petrol, road diesel and coloured and marked diesel. The new rates take effect on 19 October 2026.
The Regional Government Council approved a proposal to change the income tax rates applicable to residents of the Region. The bill will be submitted to the Legislative Assembly of Madeira under an urgent procedure.
The Administrative Council of the Madeira Legislative Assembly approved a 52,000-euro adjustment to expenditure in its own budget. The measure is intended to ensure that expenditure is correctly allocated according to its economic nature.