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V2506-14 24 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ejecución de obras

Reduced 10% VAT rate applies to the construction of sheltered apartments if used for housing

A foundation has requested clarification on the VAT rate applicable to the construction of sheltered apartments for the elderly and the associated architectural services. The DGT has ruled that construction work may be taxed at 10% if the building is primarily intended for residential use, whereas professional fees are subject to the standard 21% rate.

The question raised

Question raised: Applicable tax rate for the construction of the property and for the services of the architect, topographical studies, and geotechnical studies associated with the construction.

The DGT's ruling

The execution of works for the construction of buildings intended primarily for housing (at least 50% of the surface area) is taxed at the reduced rate of 10%. This includes residential complexes for the elderly if they occupy the building as their habitual residence. However, fees for architects and topographical or geotechnical studies are subject to the general rate of 21%.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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