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V0737-26 31 March 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rehabilitación de edificaciones

VAT rate for home sales depends on whether works constitute rehabilitation or property is habitable

A company asked whether homes renovated from a ruined state were subject to VAT or exempt, and which rate applied. The DGT explains that exemption depends on whether the works qualify as rehabilitation, and that the reduced 10% rate does not require occupation licensing.

The question raised

Subjectivity and, where applicable, exemption from Value Added Tax on the transfer of the properties subject to consultation. Applicable tax rate.

The DGT's ruling

The delivery of dwellings shall be the first delivery and shall be subject to VAT if the works carried out meet the requirements for rehabilitation. If they are not rehabilitation works, the delivery shall be a second or subsequent delivery and shall be exempt. In the event that they are subject to tax, the 10% rate shall apply if the property is suitable for use as a dwelling, which is determined by its objective design and construction characteristics, without the habitability certificate or occupancy license being indispensable.

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