Discover how to fiscally optimize the purchase of a new construction tourist property with tourist urban qualification in Spain.
What type of VAT is applied?
When acquiring an apartment with tourist urban qualification (non-residential), the general VAT rate of 21% applies, since it is not considered housing for tax purposes, although its use is similar to residential.
Why can this benefit you?
If you purchase the property as an entrepreneur or self-employed person to dedicate it to tourist rental, you can benefit from the reverse charge mechanism. This allows you to avoid direct payment of VAT to the developer and improve your liquidity from the start.
What does the reverse charge mean?
- You don't pay VAT to the seller.
- You declare it yourself in your model 303 (quarterly VAT return).
- You deduct it in the same self-assessment.
- Result: the VAT doesn't come out of your pocket.
Practical Example
Apartment price:€300,000
VAT (21%):€63,000
Normal operation:
- You pay the developer €363,000
With reverse charge:
- You pay only €300,000
- In model 303:
- +€63,000 as accrued VAT
- €63,000 as deductible VAT
- Total to pay €0
Advantages for the investor
- Immediate liquidity savings:you don't advance €63,000
- Completely legal operationbacked by VAT Law
- Professional tax positioning
- Higher profitability from day one