Faq

Vale Added Tax is an indirect tax on consumption and includes the change of hands of goods and services carried out through companies or between professional people. This tax is always paid by the final consumer, that in the case of a construction development is the purchaser wishing to buy a new home.Generally, 7% is applied to the sale of a home which is the reduced rate, included within this rate are all types of property the are apt for human habitation such as a home, as well as garages, up to a limit of two, and annexes in said properties, as long as they are transferred as a whole entity. To these operations 4% is applicable, super reduced type, as long as the following conditions occur:1st That the homes are classified by the administration as special regimen under government protection or a public development by the corresponding department. 2nd That they are handed over by the developer.On the other hand, all other transfers are taxed according to full general type of VAT currently standing at16%: business places, buildings to be demolished, properties or buildings under construction, as they are not going to be used for human habitation in the immediate future, and garages and annexes when they are transferred separately from the home in the same building. To find out how much you will pay it is enough to multiply the real value of the property in the sales deeds by the percentage of the type of tax applicable.As a general rule, VAT is paid upon the reception of the goods or services, or in exceptional cases when an advanced deposit on the amount is paid. Therefore, VAT will be payable upon the reservation of the home, on the money handed over at the signing of the contract, when other intermediate charges come fall due, and once the keys have been handed over the rest of the VAT must be squared off, as it is at this moment that the final total of the tax becomes clear.
Chart of the limits of VAT-Property Transfer(ITP)-Documented Legal Acts(AJD)
Chart of tax compatibilities