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V0959-24 ·30 April 2024 ·consulta-vinculante Medium impact
Tax

Transfer of buildings under construction subject to 21% VAT, unless suitability for residential use is proven

A local council has requested clarification on the VAT rate applicable to the transfer of properties where construction is incomplete. The Directorate General for Taxes (DGT) has ruled that such transfers are subject to VAT at the standard rate of 21%, unless it can be demonstrated that the properties are fit for residential use.

In 6 key points

How it affects those involved

This ruling clarifies the tax burden for developers and buyers of unfinished properties, establishing that the standard VAT rate applies by default unless specific habitability criteria are met.

Lifecycle

2024-04-30PublishedPublished 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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