VAT on Kitchen or bathroom renovation of a home in Portugal: 6%, 13% or 23%?
6% can apply to renovating a kitchen or bathroom in a home you live in, under a works contract (verba 2.27), if materials are 20% or less of the price. Otherwise the materials, or the whole invoice, are taxed at 23%.
- Rate
- 6% on the work, if the conditions are met
- Legal basis
- Verba 2.27, Lista I, Código do IVA (CIVA)
- Contract
- A works contract (empreitada) that renovates the home
- Materials
- 6% on everything if materials are 20% or less of the total
- Above 20%
- Labour at 6% and materials at 23% if shown separately, otherwise the whole contract at 23%
- Outside the contract
- Costs not written into the works contract are taxed at 23%
- 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...
info.portaldasfinancas.gov.pt/pt/informacao_fiscal/inform... - Checked
- 2026-11-05
What decides the rate
- The home must be lived in when the work starts and afterwards.
- A plain purchase of goods, even with fitting, is not a works contract.
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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