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A property developer has requested clarification on the VAT rate applicable to the transfer of social housing intended for lease. The Directorate General for Taxes (DGT) has ruled that a 4% rate applies if the official or public protection requirements are met, whereas a 10% rate applies in all other cases.
This ruling provides legal certainty for developers regarding the application of the reduced VAT rate on social housing projects, potentially reducing tax burdens for developments that strictly adhere to public protection regulations.
The tax team reviews your specific situation.
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