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V5440-26 5 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rehabilitación de edificaciones

Transfer of a building for renovation may be subject to VAT rather than exempt

A company has requested clarification on whether the purchase of a protected building for renovation and conversion into a hotel is subject to or exempt from VAT. The DGT has determined that if the purpose is renovation, the transfer is not exempt.

The question raised

Whether the transfer of the building is subject to and, where applicable, exempt from Value Added Tax. Taxable person for the Tax.

The DGT's ruling

If the transfer of the building is intended for its rehabilitation by the acquirer, the supply shall be subject to, and not exempt from, VAT. In the event that the requirements to be considered a rehabilitation work are not met, the transfer shall be subject to, but exempt from, VAT. The taxable person shall be the entrepreneur or professional who carries out the supply.

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