VAT on Renovating a shop or office in Portugal: 6%, 13% or 23%?
23% applies to works on a shop, office or other business premises, because verba 2.27 covers only property used as a home. Social or care premises licensed for other purposes are not covered either.
- Rate
- 23% (standard rate) on the mainland
- Reason
- The property is not used as a dwelling
- Case
- Remodelling of temporary lodging for vulnerable families run by a foundation was refused the 6% rate
- Possible exception
- In an ARU, verba 2.23 is not limited to homes: see the ARU pages
- 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
- Property used for a professional, commercial, industrial or service activity is outside verba 2.27.
- Property licensed for other purposes is outside it too.
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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