VAT on Build-to-rent investment contract in Portugal: 6%, 13% or 23%?

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6% applies to building or rehabilitation contracts for residential letting or sub-letting under the rental investment contract scheme in the annex to Decreto-Lei n.º 97/2026 (verba 2.42.2).

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Rate: 6% on the works contract
Legal basis: Verba 2.42.2, Lista I, added by Decreto-Lei n.º 97/2026 of 20 May
Scope: Urban buildings or flats for residential letting, or letting for sub-letting
Conditions: Set in the annex to the same act
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...
info.portaldasfinancas.gov.pt/pt/informacao_fiscal/inform...
Checked: 2026-11-05

What decides the rate

The scheme applies only to buildings covered by a contract under that annex.
Read the annex or ask an adviser about eligibility before invoicing.

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

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