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V2830-19 ·15 October 2019 ·consulta-vinculante Medium impact
Tax

Application of passive investor investment in construction works and 10% reduced VAT rate based on building purpose

A company renting housing with hospitality services seeks clarification on passive investor investment, the applicable VAT rate for its construction, and the deduction period. The DGT determines that the company is a passive investor and that a 10% reduced VAT rate applies if the building is primarily intended for residential use.

In 6 key points

How it affects those involved

The ruling clarifies that passive investor investment in residential construction qualifies for a 10% reduced VAT rate, providing clear guidance on tax treatment and deduction periods for such projects.

Lifecycle

2019-10-15PublishedPublished 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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