VAT on Renovating an empty home to sell or let in Portugal: 6%, 13% or 23%?
23% applies to renovating a home that is empty or bought to resell or let, because verba 2.27 covers only homes actually lived in when the work is done and afterwards.
- Rate
- 23% (standard rate) on the mainland
- Reason
- The home is not in use as a dwelling during the works
- Court of Justice of the EU
- Case C-433/22 of 11 January 2024, cited by the tax authority
- Empty homes
- A home that is vacant when the work is done does not qualify
- Other route
- Rehabilitation of a building for sale as main homes may qualify under verba 2.42.1
- 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... - Checked
- 2026-11-05
What decides the rate
- The buyer or investor is not the final consumer for this purpose.
- Check the new build and rehabilitation pages for the 2.42.1 rule.
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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