V3295-19 ·28 November 2019 ·consulta-vinculante Medium impact
Tax

21% standard VAT rate applies to property sales without occupancy certificates and rehabilitation works lacking such documentation

A construction company requested clarification on the VAT rate applicable to the sale of a property without an occupancy certificate and to commissioned rehabilitation works. The DGT has determined that, due to the absence of an occupancy certificate or a first occupation licence, the sale of the property is subject to the 21% rate. Furthermore, rehabilitation works will only qualify for the 10% reduced rate if the property possesses the required documentation upon completion.

In 6 key points

How it affects those involved

This ruling clarifies that the tax status of property sales and renovation works is strictly contingent upon the existence of valid occupancy documentation, potentially increasing the tax burden for properties lacking such certification.

Lifecycle

2019-11-28PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.
PDF on boe.es

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