- Reduced VAT rate (6% mainland, 4% Autonomous Regions) applies to construction or rehabilitation of residential properties for sale or lease, for urbanist operations started between 23 September 2025 and 31 December 2029, until 31 December 2032.
- Properties must be intended for the purchaser’s own permanent residence or for residential leasing.
- Application of the reduced VAT rate is conditional on the sale price and specific requirements.
- For sales: property must be subject to RETT rates for permanent residence and sold within 24 months of documentation issuance.
- For leasing: lease must be VAT-exempt, reported to the Tax Authority, first lease signed within 24 months, and property leased for at least 36 months within the first five years.
Source: taxand.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.
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