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V5462-26 11 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% reduced VAT rate applies if dwelling and plot are transferred as a single property

A real estate company has requested clarification on the VAT rate applicable to the transfer of a single-family dwelling together with a plot intended to be formally merged with the dwelling's land. The DGT indicates that if the merger occurs prior to the transfer, it is treated as a single property subject to the 10% reduced rate; however, if they are transferred separately, the plot will be subject to the standard rate.

The question raised

Type of Value Added Tax applicable to the transfer of the aforementioned dwelling.

The DGT's ruling

If the formal aggregation of the land to the plot where the dwelling is located is carried out prior to the transfer, the operation constitutes the delivery of a single property and is taxed at the 10% VAT rate. If the dwelling and an independent plot are transferred, the dwelling is subject to the reduced rate of 10% and the plot to the general rate of 21%. The suitability of the building to serve as a dwelling is an objective concept that does not mandatory require a certificate of habitability or an occupancy permit to apply the reduced rate.

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