VAT on Building your own home as a private person in Portugal: 6%, 13% or 23%?
23% is invoiced when a private person has their own main home built, because verba 2.42.1 covers only buildings meant for sale or letting. A partial refund of the VAT may be claimed under a separate scheme.
- Rate
- 23% on the building invoices
- Reason
- Verba 2.42.1 does not cover self-build of one's own home
- Refund scheme
- Partial refund of the VAT paid, in Annex II of Decreto-Lei n.º 97/2026
- Who qualifies
- A private person not acting in a business, with the home proved by tax domicile
- Value cap
- Property value or land cost plus building cost, without VAT, up to EUR 660,982
- Use
- Occupied within 6 months of the use document and kept as the main home for at least 12 months
- Planning window
- 25 September 2025 to 31 December 2029, with VAT due from 1 January 2026
- 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 refund conditions are set out in tax authority circular 25118 of 22 July 2026, as quoted in AT ruling 30499.
- A home with a licence application filed before 25 September 2025 does not qualify for the refund.
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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