Reduced VAT Rate
Reducing Costs, Maximizing Benefits
In Portugal, there is an advantageous opportunity to save on taxes when carrying out construction work due to the reduced VAT rate. This offers excellent prospects for those planning to build, renovate, or rebuild residential properties.
The reduced VAT rate is applicable to a wide range of construction work, including repairs, restoration, updating and conservation of residential properties. It is important to note that this benefit is only available for work related to residential properties and intended exclusively for housing.
The advantages of the reduced VAT rate include a rate of 6% on the Portuguese continent and 4% in autonomous regions. This significant reduction in the VAT rate can result in substantial savings for property owners who plan to carry out construction work.
However, there are some restrictions to consider. For example, the reduced VAT rate does not apply to cleaning work, maintaining green areas, swimming pools and other similar facilities. In addition, to be eligible for the reduced VAT rate, the building must be residential and remain as such after the completion of the works.
Request a free quote for Remodeling
After requesting a quote, you will be contacted within two business days.
Our technical team will analyze your project and will be available to help you choose the best solutions, taking into account the cost/benefit ratio.
The reduced VAT rate may also apply to the following types of services:
• Works for the conservation, repair and improvement of buildings or parts of residential buildings, owned by construction and housing cooperatives, assigned to their members under collective ownership;
• Any work contracted directly by the Institute of Housing and Urban Rehabilitation, as well as those carried out under special financial or fiscal support schemes for the rehabilitation of buildings, or programs financially supported by the Institute of Housing and Urban Rehabilitation;
• Urban rehabilitation works carried out in non-residential buildings or public spaces located in urban rehabilitation areas (intervention zones of urban rehabilitation societies, critical urban recovery and conversion areas, and others), delimited by legal terms, or within the scope of requalification and rehabilitation operations of recognized national public interest;
• Building construction projects promoted by construction and housing cooperatives, whose housing falls under the social housing policy, is certified as such by the National Housing Institute and whose construction respects the concept and parameters of cost-controlled housing.
If you are planning to carry out construction work in Portugal, CASA NOVA can help you take advantage of the benefits of the reduced VAT rate. We will provide you with a detailed consultation and assistance in organizing the process, so you can save on taxes and get quality construction services. Don't miss this opportunity to save money, contact us now!
