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A housing cooperative has enquired whether it can apply the reduced 4% VAT rate when acquiring buildings from developers for use-rights transfers. The Directorate-General for Taxes (DGT) explains that to apply this rate, specific conditions regarding special leasing regimes or official protection status must be met.
Entities seeking to benefit from the reduced VAT rate on property acquisitions must ensure their business model aligns with specific leasing or social housing regulations.
The tax team reviews your specific situation.
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