VAT on New building for long-term letting in Portugal: 6%, 13% or 23%?
6% applies to the building contract for a new building used only for residential letting, if the monthly rent is no more than EUR 2,300 (verba 2.42.1). Otherwise the contract is taxed at 23%.
- Rate
- 6% on the building contract
- Rent cap
- EUR 2,300 a month, 2.5 times the 2026 minimum wage
- Letting
- VAT-exempt under art. 9 CIVA, with leases reported under art. 60 of the Stamp Duty Code
- First lease
- Within 24 months of the use document
- Minimum letting
- Leases in force for at least 36 months of the first five years
- Sub-letting
- Not agreed above EUR 2,300
- Planning window
- Application or notice filed between 25 September 2025 and 31 December 2029
- 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
- A company renting to named people for their permanent home can meet the housing-only test if the lease says so and the property is not used commercially.
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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