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V0613-25 ·1 April 2025 ·consulta-vinculante Low impact
Tax

Reduced VAT applies to self-construction; no reinvestment exemption if property not habitual

A taxpayer asks about VAT on construction and materials, and reinvestment exemption in income tax. The DGT clarifies that construction works may be subject to 10% VAT, while direct material purchases are taxed at 21%, and no reinvestment exemption applies if the property sold was not habitual.

In 6 key points

How it affects those involved

Taxpayers constructing their own homes must apply 10% VAT to construction works, while materials are taxed at 21%. No reinvestment exemption is available if the property was not used as a habitual residence.

Lifecycle

2025-04-01PublishedPublished 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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