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V3082-20 14 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Delivery of social housing subject to 4% VAT if surface area, price, and income limits are met

A public entity has requested clarification on whether the sale of social housing should be subject to 4% or 10% VAT. The DGT clarifies that the 4% rate applies if the properties fall under special regimes, public promotion, or meet the specific surface area, price, and income criteria established for social housing.

The question raised

Applicability of the 4 percent tax rate in Value Added Tax, pursuant to Article 91.Two.1.6º of Law 37/1992, or the 10 percent tax rate, pursuant to Article 91.One.1.7º of the same Law.

The DGT's ruling

The delivery of dwellings by their developer shall be taxed at 4% VAT if they are special regime social housing, publicly promoted, or dwellings with public protection that do not exceed the surface area, price, and income limits of social housing. The 4% rate also applies if the acquirer is an entity subject to a special Corporate Income Tax regime and meets the requirements for leasing tax relief. In any other case, the applicable rate is 10%.

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