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A private individual enquired whether constructing a property through self-promotion for long-term rental purposes qualifies for the 10% reduced VAT rate. The Directorate-General for Taxes (DGT) ruled that this rate is applicable provided the building is objectively suitable for residential use, regardless of whether it holds a certificate of occupancy or a habitation licence.
This ruling provides legal certainty for self-builders, confirming that the reduced VAT rate depends on the physical suitability of the property for residential use rather than the formal administrative status of its occupancy documents.
The tax team reviews your specific situation.
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