"The 6% VAT [Value Added Tax] applies to self-construction," the Ministry of Infrastructure and Housing clarified to Lusa.
However, this rate applies "within a certain amount," which is still being defined by the Ministry of Finance, it specified.
Luís Montenegro announced this Thursday that the government will lower the VAT rate to 6% for the construction of houses for sale up to 648,000 euros or, if rented out, with rents up to 2,300 euros (moderate rent) - a tax regime that will remain in effect until 2029.
On the other hand, the minimum VAT rate of 6% will also apply "to the construction and renovation of buildings" for rentals up to 2,300 euros.

Source: Lusa / Idealista