VAT on Rehabilitation under IHRU programmes in Portugal: 6%, 13% or 23%?

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6% applies to rehabilitation contracts placed directly by the national rehabilitation fund (FNRE) or IHRU, or carried out under special financial or tax support schemes, wherever the property is (verba 2.24).

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Rate: 6% on the works contract
Legal basis: Verba 2.24, Lista I, Código do IVA (CIVA)
Requirement: A rehabilitation works contract
Client or scheme: FNRE or IHRU directly, or a special support scheme or IHRU-funded programme
Location: Any location, not limited to an ARU
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 specific support scheme or IHRU programme must be identified for the rate to be applied.
Rehabilitation outside an ARU can qualify here because the verba applies wherever the property is.

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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