VAT on New house built for sale as a main home in Portugal: 6%, 13% or 23%?
6% applies to the building contract for a new home sold as the buyer's main home for up to EUR 660,982, if the sale follows within 24 months of the use document (verba 2.42.1). Otherwise 23% applies.
- Rate
- 6% on the building contract
- Legal basis
- Verba 2.42.1, Lista I, added by Decreto-Lei n.º 97/2026 of 20 May
- Sale value cap
- EUR 660,982 (AT ruling 30817)
- Buyer and timing
- Main and permanent home, bought at the IMT rates of art. 17(1)(a) or (b) of the IMT Code, within 24 months of the use document
- Deed
- The deed must state that the verba 2.42.1 rate was applied
- Planning window
- Licence application or notice filed between 25 September 2025 and 31 December 2029
- Last date
- Verba 2.42.1 ceases on 31 December 2032
- 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 act says its VAT changes take effect from the quarter after it enters into force (AT ruling 30817 reads this as 1 July 2026), and from 1 January 2026 if the contractor and the customer jointly opt for it.
- A home owned by several people qualifies only if every co-owner will live in it permanently.
- VAT falling due before 1 January 2026 is outside the rule.
- Where the reverse-charge rule applies, the contractor invoices without VAT and the developer accounts for the 6%.
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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