Skip to content
Back to index
V3950-16 20 September 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Reduced 10% VAT rate applicable to convent extension works intended for residential use

A religious community has requested clarification on the VAT rate applicable to extension works on their monastery. The Directorate General for Taxes (DGT) has ruled that the 10% reduced rate may be applied if the building is primarily intended for residential use and meets the necessary construction or renovation requirements.

The question raised

Applicable tax rate.

The DGT's ruling

Buildings intended for convents that constitute the dwelling or seat of domestic life of their inhabitants are considered primarily intended for housing. Extension works shall be taxed at 10% if the resulting building has more than 50% of its surface area intended for housing and meets the requirements for construction or rehabilitation. If they do not qualify as such, the 10% rate could apply for renovation and repair if the requirements for the recipient being a natural person or a community of owners and the material limit are met.

Book your free first meeting