VAT on Mixed-use building with homes and shops in Portugal: 6%, 13% or 23%?
6% applies only to the part of the building contract that matches the housing share of the building (verba 2.42.1). The commercial share is taxed at 23%.
- Rate
- 6% on the housing share, 23% on the rest
- Legal basis
- Verba 2.42.1, Lista I, added by Decreto-Lei n.º 97/2026 of 20 May
- How the share is set
- By gross construction area of the homes, and area beyond the building footprint (art. 40 of the IMI Code)
- Applies to
- Buildings in horizontal property or with independently usable flats
- Conditions
- Each home must meet the sale or letting conditions of the verba
- 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
- If only part of the building is housing, only that proportion of the contract can be taxed at 6%.
- Ask the contractor to state the split in the 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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