AIRNEST TOOL
VAT (IVA) calculator
Data for Simulation
VAT rate
Net amount (excl. VAT)
VAT amount
Total amount (incl. VAT)
VAT Calculator
Not sure which VAT rate to apply on your invoices? Use our calculator to check the correct percentage. Simply enter the net or gross amount, select the applicable VAT rate, and the tool will calculate the rest automatically.
Accounting & Tax Support with Airnest REIM
Airnest REIM and CisterData provide a complete ecosystem for property investors in Portugal. From tax compliance to legal structuring and accounting, we ensure your rental activity is managed with precision, transparency, and full peace of mind.
Update date : 22/09/2025
What is VAT (IVA) in Portugal ?
Value Added Tax (VAT), known in Portugal as IVA – Imposto sobre o Valor Acrescentado, is an indirect tax borne by the end consumer. Unlike other taxes, it is collected by businesses and then remitted to the Portuguese State.
The VAT amount is calculated from the net price (excluding VAT) of a good or service, to which the applicable rate is added.
VAT rates in mainland Portugal
Rate | Percentage | Examples |
|---|---|---|
Standard rate | 23% | Electronics, furniture, consultancy services, property management fees, most general services |
Intermediate rate | 13% | Restaurants, catering, some cultural activities, certain processed foods |
Reduced rate | 6% | Basic food products, books, public transport, residential renovation works (under certain conditions) |
Zero rate | 0% | Exports, certain medical or educational services, exempt activities under the Portuguese VAT Code |
VAT rates are lower in the Azores (16% / 9% / 4%) and Madeira (22% / 12% / 5%).
Standard rate – 23%
The standard VAT rate applies to most goods and services that do not qualify for a reduced or intermediate rate.
Examples :
Electronics and home appliances
Furniture
Professional services (including property management and concierge fees)
Intermediate rate – 13%
Applies to specific goods and services such as :
Restaurant and catering services
Some processed food products
Certain cultural and entertainment activities
Reduced rate – 6%
Mainly applies to essential goods and services :
Alojamento Local activity (AL)
Basic food items (bread, milk, fresh vegetables, bottled water)
Prescription medicines
Books, newspapers, printed magazines
Public passenger transport
Renovation or maintenance works for residential properties (if conditions are met: property completed more than 2 years ago, labour included)
Zero rate – 0%
Some transactions are exempt from VAT entirely:
Rental Contract
Export of goods outside the EU
Services linked to exports
Certain medical, educational, or non-profit activities
Long-term residential leases (unless the owner opts to apply VAT)
VAT in Real Estate and Property Management
For a property management company in Portugal, VAT may apply in different ways:
Property management fees, admin fees, concierge services → generally at 23%
Short-term rental (Alojamento Local) → accommodation at 6%, additional services (e.g. breakfast, excursions) may be 13% or 23%
Mid & Long-term residential leases → usually exempt (0%), unless VAT is voluntarily applied
Maintenance and renovation works → may be eligible for 6% if residential and conditions are met
How to calculate VAT
From gross price (TTC) to net price (HT):
Divide TTC by 1 + VAT rate:
÷ 1.23 for 23%
÷ 1.13 for 13%
÷ 1.06 for 6%
÷ 1 for 0%
From net price (HT) to gross price (TTC):
Multiply HT by 1 + VAT rate :
× 1.23 for 23%
× 1.13 for 13%
× 1.06 for 6%
× 1 for 0%
Example:
Property management fee: €100 HT at 23% → €123 TTC (VAT = €23)
Short-term rental night: €53 TTC at 6% → €50 HT (VAT = €3)
Share this post