Self-construction in Portugal: how to recover VAT and reduce costs in construction

In a context in which investment control takes on an increasingly relevant role, self-construction emerges as a solid alternative for those looking for greater financial efficiency and personalization in the development of a property.

In addition to the flexibility in the design and in the choice of construction solutions, there is also a fiscal dimension to consider: the possibility of recovering part of the VAT, currently set at 17%, associated with the work. When properly framed, this mechanism can translate into a significant reduction in the total cost, contributing to a more efficient management of the investment.

This process, however, requires rigorous planning, an appropriate legal framework and specialized technical monitoring. Solid and planned structuring from the beginning is crucial to ensure that all benefits are effectively reaped

To benefit from this recovery, it is essential to:

• Be the owner of the land and promoter of the work
• Ensure that the property is intended for own housing
• Comply with all applicable legal and tax requirements
• Ensure that the work is properly licensed

Regarding documentation, it is necessary to:

• Building permit issued by the city council
• Detailed invoices for materials and services, with VAT identification
• Proof of payment
• Proper tax registration of the operation

At Mulberry Real Estate, we monitor each project in a personalized way, ensuring that each step is executed strategically and aligned with the objectives of those who invest.

Contact us to identify the most appropriate solutions for optimising tax benefits on your project.