VAT on Housing cooperative new build in Portugal: 6%, 13% or 23%?
6% applies to building contracts, and related services, where housing cooperatives are the developers, if the homes fit social housing policy and are certified by IHRU (verba 2.25).
- Rate
- 6% on the works contract and related services
- Legal basis
- Verba 2.25, Lista I, Código do IVA (CIVA)
- Developers
- Housing and construction cooperatives and their unions
- Homes
- Controlled-cost standards, raised by 20%, as a guide
- Certification
- By IHRU, I.P.
- 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
- Related services count only when there is a real building contract that falls under the same verba.
- Services for earlier infrastructure work are not covered.
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.