- Consultation from the DGT regarding the reduced VAT rate for rehabilitation works
- A company specializing in property rental acquired a property and needs renovations
- Inquilinos will contract the works in exchange for rent adjustments
- Question: Can the renovations be subject to the reduced 10% VAT rate?
- Answer: The 10% rate applies if the works meet specific criteria for rehabilitation
- The reduced rate does not apply to renovations or repairs for commercial property owners
- Applicable VAT rate is 10% for rehabilitation works, otherwise 21% applies
- Relevant legislation: Law 37/1992 on VAT, specific articles mentioned for reference
Source: audiconsultores-etlglobal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
