Press Room Buy your property now with 4% VAT 

25/08/2011 

This current tax rate is only applicable to new build properties purchased after the 20th of August and which are handed over before the 31st of December 

After the publication of the Royal Decree-Law 9/2011 on the 19th August, published on the 20th of August 2011 in the B.O.E. (Official State Gazette), if you buy a property and the hand over takes place before the 31/12/2011, you can benefit from a VAT reduction, whereby the rate of 4% would apply instead of 8%.

Literally the regulation states the following:

Royal Decree-Law 9/201, of the 19th of August, referring to measures for the improvement of quality and cohesion of the national health system, contribution to fiscal consolidation, and increase in maximum amount for State guarantees for 2011

“Temporary fourth regulation. Tax rate applicable for Value Added Tax for property handovers.

With effect as from the time this Royal Decree-Law comes into force and valid exclusively until the 31^st of December 2011, the reduced rate of 4% Value Added Tax will be applied for hand over of properties as referred to in point nº7 of section one.1, article 91 of Law 37/1992, dated 28^th of December, for Value Added Tax”.