VAT Aspects

 

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General VAT rates for real estate Spain

In summary, the VAT rates related to real estate in Spain are the following:

Buy, sell, standard rates

Housing, new build: 10%
Land: 21%
Commercial real estate: 21%

Relevant explanations are given below.

VAT when buying real estate in Spain

• The low VAT rate of 10% applies to new homes.
• For commercial real estate the high VAT rate of 21% applies.
• For building land, the high VAT rate of 21% applies.
• If you buy building land with a construction contract linked to it, the low VAT rate of 10% applies to both.

VAT settlement

In accordance with the Spanish regulations, VAT can be settled or reclaimed, provided that business activities are carried out and the company is registered.

Construction

If you have purchased a property and later have a garage or a swimming pool, the high rate of 21% applies.

Renovation

If you buy a house and carry out renovations where (1) the cost of this amounts to more than 25% of the purchase price and (2) there are actual structure and facade changes, then the house will be equated to new construction and the VAT can be settled or to be asked back.

VAT when renting a property in Spain

When renting a property in Spain and other real estate the following VAT rates apply in Spain:

Rental, standard rates            

Housing: exempt
Commercial real estate: 21%

 

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