Frequently asked questions in relation to VAT on property rentals
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The 21% rate.
The 21% rate.
10% will be applied to rentals with an option to purchase homes (4% if they are officially protected homes).
The 21% rate.
The lease is exempt from VAT . It is subject to the Capital Transfer Tax (ITP), which is the responsibility of the Autonomous Communities, and is exempt if it is a lease for stable and permanent use.
The general rate of 21%.
The general rate is 21% because the owner, recipient of the repair services, assigns the dwelling to rent, not to private use.
As long as the dwelling has a certificate of habitability or a first occupancy license, once its construction is completed, it will be considered suitable for use as a dwelling and the reduced tax rate of 10% will be applied if the work meets the requirements to be considered rehabilitation (article 20.one.22. A LIVA ) or renovation or repair work (article 91.one.2. 10 LIVA). Consultation DGT V2250-20
For more information on the application of the reduced rate for residential works: