Invoices, payments and taxes for construction and renovation

In CAE-Rev.4, in force since 2025, building construction uses 41000, «Construção de edifícios residenciais e não residenciais». In renovation and finishing, floor and wall covering has 43330, painting and glazing 43340 and other finishing 43350.

In CAE-Rev.3, they were 41200, 43330, 43340 and 43390. Electrical and plumbing installation have their own codes, 43210 and 43221.

Decree-Law 9/2025 (CAE-Rev.4) (Opens in a new window) ·Decree-Law 381/2007 (CAE-Rev.3) (Opens in a new window)

Renovation, repair and maintenance work on a home carries IVA at 6% in mainland Portugal. Materials are also at 6% if they do not exceed 20% of the total value of the job; above that, they are at 23%.

Pools, saunas, cleaning and garden upkeep are at the standard rate. In FIZ, each invoice line has its own rate, for example 6% on the work and 23% on materials.

Other work takes 23% on the mainland. If you invoiced up to 15,000 € in the previous year, or expect no more than that in the year you start, you can invoice without IVA.

If you pass 18,750 € in the current year, you lose the exemption and charge IVA from that moment.

IVA Code, art. 18 (Opens in a new window) ·Lista I, verba 2.27 (Opens in a new window) ·IVA Code, art. 53 (Opens in a new window) ·art. 58 (Opens in a new window)

For building services, including renovation, repair and maintenance, supplied to a company or a self-employed person in Portugal with the right to deduct IVA, a provider holding an IMPIC alvará or certificado de empreiteiro invoices without IVA, with the note «IVA - autoliquidação». Since 1 July 2026, without an alvará or certificado, the invoice carries IVA.

The buyer declares that IVA and deducts it in the same declaration: with a full deduction, the balance is 0 €. A self-employed client tells the provider the work is for their business. In FIZ, the invoice goes out with that note and the code M31 when you choose that reason.

IVA Code, art. 2 (Opens in a new window) ·AT circular 25117/2026 (Opens in a new window)

Yes. Describe the work and the materials and set the prices in the quote. When the client accepts, issue the invoice from it in FIZ. A quote does not prove a sale or a payment.

You issue an invoice for every job and for every advance you receive, even if the client does not ask for one. A simplified invoice works for jobs up to 100 €; with the IVA exemption, with no limit.

IVA Code, art. 29 (Opens in a new window) ·art. 40 (Opens in a new window)

In the simplified regime, construction and renovation work has the coefficient 0.35: 35% of what you invoice for services counts as income. With 30,000 € in services, IRS is worked out on 10,500 €. These activities are not in the IRS activity table, so the 0.75 coefficient does not apply.

To avoid paying more IRS than you need to, business expenses need to reach 15% of what you invoice for services. Business invoices on e‑Fatura, the rent for your premises and the salaries you pay count, plus a fixed amount the law already allows for, or your Seg. Social contributions if they are higher. If the total is below 15%, the difference is added to your taxable income. FIZ shows how much is left to reach 15%.

In the year you open your activity, the services coefficient is reduced by 50%, and the next year by 25%, if in those years you receive no salary or pension and have not closed an activity in the previous five years.

IRS Code, art. 28 (Opens in a new window) ·art. 31 (Opens in a new window) ·IRS activity table (Opens in a new window)

Under the simplified regime, Seg. Social counts 70% of services, without IVA, and the monthly contribution base is a third of that quarterly amount. The rate is 21.4%, or 25.2% if you declare to Seg. Social that you are an empresário em nome individual with only commercial or industrial activity. If you work as self-employed for the first time, you pay no contributions for 12 months.

FIZ calculates the contribution from your invoices, prepares the quarterly declaration and submits it with one click from you.

Contributions Code, art. 162 (Opens in a new window) ·art. 168 (Opens in a new window)

The CAE, IVA and invoice rules stay the same. The company pays IRC on profit and keeps full accounting (contabilidade organizada) with a certified accountant.

IRC is filed in the Modelo 22 by the end of May. Under the simplified regime, with turnover up to 200,000 € and the other legal conditions, it is worked out on 10% of services.

In FIZ, the company’s certified accountant confirms the IVA declaration with one click and FIZ submits it to the AT.

IRC Code, art. 86‑A (Opens in a new window) ·art. 86‑B (Opens in a new window) ·IRC Code, art. 123 (Opens in a new window) ·OCC Statute, art. 10 (Opens in a new window)