VAT on Repair of a private dwelling in Portugal: 6%, 13% or 23%?
6% applies to repairing a home you live in under a works contract (verba 2.27) if materials are 20% or less of the price. Above 20%, only the invoiced labour gets 6%, and one global-price invoice is taxed wholly at 23%.
- Rate
- 6% on the work (23% on materials above the 20% limit)
- Legal basis
- Verba 2.27, Lista I, Código do IVA (CIVA)
- Contract
- A works contract (empreitada)
- Property
- A home in use as a dwelling when the work starts and still after it (AT circular 30135 of 2012)
- Materials
- If materials are 20% or less of the total, the whole job is 6%
- Invoice
- Above 20%: separate labour at 6% and materials at 23%, or a single global price at 23%
- Not covered
- Cleaning, upkeep of green spaces, and works on pools, saunas and tennis courts
- 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
- Costs not written into the works contract are taxed at 23%.
- Homes that are empty or used for business do not qualify.
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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