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V5444-26 6 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

4% VAT rate on property acquisitions by entities requires compliance with leasing requirements

A housing cooperative has enquired whether it can apply the reduced 4% VAT rate when acquiring buildings from developers for use-rights transfers. The Directorate-General for Taxes (DGT) explains that to apply this rate, specific conditions regarding special leasing regimes or official protection status must be met.

The question raised

Whether the 4 percent Value Added Tax rate provided for in article 91.Two.1.6º of Law 37/1992 would be applicable to the acquisitions of said housing by the consulting entity.

The DGT's ruling

To apply the 4% VAT rate on the acquisition of housing by entities, two conditions must be met: the application of the special regime for entities dedicated to the leasing of housing (Chapter III, Title VII of the LIS) and that the income from subsequent leasing qualifies for the relief provided in art. 49.1 of the LIS. It is possible to apply the 4% rate if the entity does not yet meet the requirements but has a confirmed intention to engage in leasing and comply with the relief the following year. Otherwise, the 10% rate shall apply.

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