VAT on Affordable rental housing in Portugal: 6%, 13% or 23%?

Independent site: we are not a public authority, and this is not legal or tax advice.

6% applies to building or rehabilitating affordable-rent housing (arrendamento acessível) under verba 2.18, if IHRU certifies it and at least 700/1000 of the units, or the whole building, serve that purpose.

Ask for a free check

Rate: 6% on the works contract
Legal basis: Verba 2.18, Lista I, Código do IVA (CIVA)
Certification: By IHRU, I.P.
Share of the project: At least 700/1000 of the units in horizontal property, or the whole building
Developer: Any promoter qualifies
Official text (Lista I of the Código do IVA): info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo...
Sources: info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo...
Checked: 2026-11-05

What decides the rate

The affordable-rent definitions are set by a ministerial order (portaria) on housing.
A project only partly for affordable rent needs to reach the 700/1000 share.

Important

This page is a general summary of public sources and not tax advice.
Rates shown are for mainland Portugal. The rate depends on the facts of each job, so ask a certified accountant (contabilista certificado) or the Tax Authority (AT) before you invoice or pay.

More: VAT guide

Free check

Tell us what work you plan and where. We will answer your VAT question by email, for free, using the official sources. This is general information, not tax advice.