Understand the reduction of the IVA
With the reduction of the rate IVA, 6% in mainland Portugal and 4% in the autonomous regions of the Azores and Madeira. To calculate the IVA with the reduced rate, we must have the value of labor and materials.
Usually the value of the workforce corresponds to about 60% in remodeling and 70% in the painting of buildings. In exceptional cases when the value of labor exceeds 80% of the total value of the work, it may be applied at reduced rate in the total value of the work.
The reduced rate IVA does not apply to materials, cleaning work, swimming pools, saunas, maintenance of green spaces, golf courses, tennis, mini-golf or facilities of the same nature.
And it applies to remodeling, restoration, renovation, repair, improvement or conservation of real estate for housing.
We may also apply the reduced rate of IVA in the following services:
Urban rehabilitation works carried out in non-residential real estate or public spaces located in urban rehabilitation areas. How, (areas of intervention of urban rehabilitation societies, critical areas of rehabilitation and urban redevelopment and others) delimited under the legal terms, or in the scope of rehabilitation and rehabilitation operations of recognized national public interest;
Any work contracted directly by the Institute of Housing and Urban Rehabilitation. As well as those carried out under special schemes of financial or fiscal support for the rehabilitation of buildings. Also under programs supported financially by the Institute of Housing and Urban Rehabilitation;
Construction works for real estate promoted by housing and construction cooperatives. Whose dwellings are part of the social housing policy, be certified as such by the National Housing Institute. And the construction respects the concept and the parameters of housing of controlled costs;
Works for the conservation, repair and improvement of buildings or part of urban housing buildings, owned by housing and construction cooperatives, assigned to its members in collective ownership;
For more information on the Reduced Rate IVA see the List I attached to the IVA CIVA Code, verbatim 2.27, following the renumbering and republishing of the CIVA made by Decree-Law no. 102/2008, of 06/20/2008: .