VAT on Controlled-cost housing in Portugal: 6%, 13% or 23%?

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6% applies to building or rehabilitating controlled-cost housing (habitação de custos controlados), whoever the developer is, when certified by the housing institute IHRU (verba 2.18).

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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 or flats
Types covered: Economic housing, controlled-cost housing and affordable-rent housing
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 definitions are set by a ministerial order (portaria) on housing.
In Madeira and the Azores certification is by the regional housing bodies named in the verba.

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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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.