VAT on New building reusing an old structure in Portugal: 6%, 13% or 23%?
Verba 2.27 (6% for home repairs) does not apply to a new building that reuses part of an old frame, because it is construction. The rate is 23% unless the new-build rule (verba 2.42.1) fits.
- Rate
- 23% unless verba 2.42.1 applies
- Case
- Partial demolition, reinforcement and completion of a six-floor concrete structure for 10 flats
- Reason
- A new building is construction, even with a partly kept structure
- Verba 2.27
- Does not cover construction contracts for homes
- 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
- The ruling dates from January 2026, before Decreto-Lei n.º 97/2026.
- Check the planning window and sale or letting conditions on the new build pages.
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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