VAT on House extension or extra floor in Portugal: 6%, 13% or 23%?
23% applies to extending a house or adding a floor, because verba 2.27 leaves out construction works such as additions, raising a building and rebuilding.
- Rate
- 23% (standard rate) on the mainland
- Reason
- These are construction works, not repair or renovation
- Excluded by AT circular
- Additions, raising a building and reconstruction
- Equipment
- Repair and maintenance of equipment that is part of a building is also excluded
- 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...
info.portaldasfinancas.gov.pt/pt/informacao_fiscal/inform... - Checked
- 2026-11-05
What decides the rate
- A pure repair or renovation of a lived-in home is a different case: see the repair pages.
- In an ARU, rehabilitation of an existing building may be 6% under verba 2.23.
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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