“The VAT [Value Added Tax] at 6% applies to self-construction,” clarified the Ministry of Infrastructure and Housing to Lusa.
However, this rate applies “within a certain value,” which is still being determined by the Ministry of Finance, it specified.
Luís Montenegro announced on Thursday that the Government will reduce the VAT rate to 6% for the construction of houses for sale up to 648,000 euros or, if for rental, with rents up to 2,300 euros (moderate rent) – a tax regime that will be in effect until 2029.
On the other hand, the minimum VAT rate of 6% will also apply “to the construction and rehabilitation of buildings” for rentals up to the value of 2,300 euros.
