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V0169-22 ·3 February 2022 ·consulta-vinculante Medium impact
Tax

4% VAT rate on dwellings and 10% on garages for leasing entities

A commercial entity has requested clarification on the VAT applicable to the purchase of a building comprising dwellings, premises, and garages for subsequent rental. The DGT clarifies the applicable tax rates, the exemption on garage rentals, and the possibility of deducting input VAT.

In 6 key points

How it affects those involved

This ruling clarifies the VAT treatment for real estate investment entities, specifically regarding the distinction between residential and non-residential assets and the rules for VAT recovery through pro rata calculations.

Lifecycle

2022-02-03PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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