Before setting your renovation loan amount, take time to identify available tax benefits. They can reduce actual work cost by 15 to 30%.

Income tax deduction for renovation

Portuguese regime allows, within limits, deduction of principal home renovation expenses. Eligible works include energy improvement, safety compliance and accessibility.

  • Annual cap: consult the regime in force at the time of declaration.
  • Mandatory documentation: detailed invoices with provider's tax number.
  • Note: works must be invoiced to the declaring owner.

Reduced VAT

Certain renovation works on housing over two years old benefit from 6% VAT instead of 23%. An immediate 17-point gain on the bill.

Always check with your contractor that the reduced rate applies. Some providers invoice at 23% out of simplification — you are entitled to request correction.

Regional programmes

Several municipalities and the national urban rehabilitation programme offer non-refundable grants for energy renovation. Conditions vary: consult your town hall before starting.

Our practical advice

Do the math in reverse: identify available aids, quantify their amount, then calculate the loan needed to cover the rest. This simple order avoids borrowing more than necessary.