- The Spanish Supreme Court ruled that the absence of a certificate of habitability or an occupancy license does not automatically exclude the application of the reduced 10% VAT rate for the transmission of new homes.
- The Court argues that the condition of a property as a dwelling should not depend solely on the existence of such a certificate.
- The lack of a certificate at a given time does not mean that the property ceases to be a dwelling, nor can its subsequent obtaining be the only criterion for determining its classification.
- Tourist apartments are excluded from this condition, as they do not fulfill the purpose of meeting the needs of a permanent dwelling.
- To apply the reduced 10% VAT rate, the following aspects must be considered:
- It is not an essential requirement to have a certificate of habitability, occupancy license, or similar authorization at the time of sale.
- The Court establishes that the suitability of a building for use as a dwelling may be proven by any means of proof admitted in law.
- It will be key to determine what additional means of proof will be admitted to justify the residential use of the property, as well as to assess whether the Administration will require any specific requirement or, on the contrary, will apply a more flexible interpretation.
- Until there is a consolidation of the administrative criterion, it is understood that it will be advisable to proceed with caution to avoid possible tax contingencies.
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.
