Moving residence after buying a home with 6% VAT may result in a 10% IMT increase in the first year, according to the new decree-law.
Source: Adobe Stock
Author: Redaction
6% VAT and new penalty rules
Anyone purchasing a home with the benefit of 6% VAT on construction or renovation of primary and permanent housing will no longer have to repay this tax incentive if they later stop living in the property. However, the 6% VAT regime is now linked to a new IMT penalty.
Under the new 6% VAT rules, if the property is not used as a permanent residence within six months or ceases to be so within the first year, the buyer may face a 10% increase on the taxable value of the property. This change replaces the obligation to refund the VAT benefit with an alternative tax penalty.
Conditions for applying 6% VAT
The 6% VAT regime applies to properties intended for primary and permanent housing or rental housing with moderate rents. To benefit from 6% VAT, the property must be sold within a maximum of 24 months after the occupancy licence is issued, and this condition must be stated in the purchase deed.
The 6% VAT applies to urban development operations started between September 2025 and December 2029, with phased implementation. In the case of rental, 6% VAT requires the property to be maintained for at least 36 months and rent limits of up to 2,300 euros per month.
IMT, rental and exceptions
Under the new 6% VAT framework, the 10% IMT penalty does not apply in exceptional situations such as marriage, cohabitation, divorce or an increase in household size. The 6% VAT regime therefore allows some flexibility in duly justified cases.
In addition to 6% VAT, the tax package includes income tax reductions for rental income, incentives for long-term rental, and investment incentives in real estate. The 6% VAT coexists with more favourable taxation rules for landlords and investors.
Developers remain required to comply with the 6% VAT conditions and to regularise tax payments with the Tax Authority if the conditions are no longer met, ensuring correct application of the 6% VAT regime.
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