Can a Self-Builder reclaim VAT in Spain
Oct 31st 2006, 11:21 am
#1
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Can a Self-Builder reclaim VAT in Spain
Hi All and particularly Cadizbuilder,
In UK a concession by HMRC allows the self-builder at the completion of a new self build project to aggregate all the Vat paid on materials and services and to reclaim the full amount in a once off transaction. To do this you do not have to be a company or be individually registered for Vat. I know this works since I have gone through the process twice. HMRC are picky about what is allowed for instance carpets are not eligible but ceramic floor tiles fixed in place are.
Does anyone know if the Spanish Hacienda has a similar scheme for self builders in Spain?
Regards,
John.
In UK a concession by HMRC allows the self-builder at the completion of a new self build project to aggregate all the Vat paid on materials and services and to reclaim the full amount in a once off transaction. To do this you do not have to be a company or be individually registered for Vat. I know this works since I have gone through the process twice. HMRC are picky about what is allowed for instance carpets are not eligible but ceramic floor tiles fixed in place are.
Does anyone know if the Spanish Hacienda has a similar scheme for self builders in Spain?
Regards,
John.
Oct 31st 2006, 4:07 pm
#2
Joined: Jun 2006
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Re: Can a Self-Builder reclaim VAT in Spain
No you cannot reclaim IVA.
If you employ a builder he will charge you 7% IVA but if you do it yourself you pay the full 16%.
On the other hand, if you buy a house you will pay 7% transfer fee plus 1% documentation fee. If you build it yourself you only pay the 1%.
If you employ a builder he will charge you 7% IVA but if you do it yourself you pay the full 16%.
On the other hand, if you buy a house you will pay 7% transfer fee plus 1% documentation fee. If you build it yourself you only pay the 1%.
Nov 2nd 2006, 12:42 pm
#3
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Re: Can a Self-Builder reclaim VAT in Spain
Hello John & Kath,
As a result of recent rains I've been away from the forum, busy with roof repairs.
Anyway with regards to your question it's not something I'm aware of.
There's a sort of equivalent in Spain to a self builder in Spain that is "Auto Promocion" where you are declaring yourself as the developer. However in order to claim IVA on your expenses you may need to register as self employed "Autonomo".
I know of cases where people have improved a property and later sold it and used our invoices to off-set their tax liability.
Sorry I can't further.
Best regards
David
As a result of recent rains I've been away from the forum, busy with roof repairs.
Anyway with regards to your question it's not something I'm aware of.
There's a sort of equivalent in Spain to a self builder in Spain that is "Auto Promocion" where you are declaring yourself as the developer. However in order to claim IVA on your expenses you may need to register as self employed "Autonomo".
I know of cases where people have improved a property and later sold it and used our invoices to off-set their tax liability.
Sorry I can't further.
Best regards
David
Nov 2nd 2006, 1:50 pm
#4
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Re: Can a Self-Builder reclaim VAT in Spain
Builder's invoices alone are not sufficient to legitimately mitigate a capital gains tax liability when selling a property. Any improvements in the property must be reflected in an escritura de obra nueva.
If the amount claimed as expenses does not exceed a certain percentage of the gain it may be possible to get away with it but if you are singled out for a tax inspection you will run into bumpy waters.
If the amount claimed as expenses does not exceed a certain percentage of the gain it may be possible to get away with it but if you are singled out for a tax inspection you will run into bumpy waters.
Nov 2nd 2006, 1:53 pm
#5
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Re: Can a Self-Builder reclaim VAT in Spain
Hi Cadizbuilder,
Thanks for that and it also explains why my arquitecto has required me to sign all sorts of forms to the college, the Ayuntamiento and the Notario as the developer. It may be paves the way for me to make a claim. Although on another thread I have read that if you become self employed you must pay a minimum of €230 a month to the Hacienda.
Glad to hear that you are keeping busy except not so good for those with the leaky roofs. We follow the weather every day on UK weather .com and you seem to have had almost 2 weeks of continuous rain but it looks brighter now on the webcams in Ayamonte.
Regards,
John.
Thanks for that and it also explains why my arquitecto has required me to sign all sorts of forms to the college, the Ayuntamiento and the Notario as the developer. It may be paves the way for me to make a claim. Although on another thread I have read that if you become self employed you must pay a minimum of €230 a month to the Hacienda.
Glad to hear that you are keeping busy except not so good for those with the leaky roofs. We follow the weather every day on UK weather .com and you seem to have had almost 2 weeks of continuous rain but it looks brighter now on the webcams in Ayamonte.
Regards,
John.
Originally Posted by Cadiz Builders
Hello John & Kath,
As a result of recent rains I've been away from the forum, busy with roof repairs.
Anyway with regards to your question it's not something I'm aware of.
There's a sort of equivalent in Spain to a self builder in Spain that is "Auto Promocion" where you are declaring yourself as the developer. However in order to claim IVA on your expenses you may need to register as self employed "Autonomo".
I know of cases where people have improved a property and later sold it and used our invoices to off-set their tax liability.
Sorry I can't further.
Best regards
David
As a result of recent rains I've been away from the forum, busy with roof repairs.
Anyway with regards to your question it's not something I'm aware of.
There's a sort of equivalent in Spain to a self builder in Spain that is "Auto Promocion" where you are declaring yourself as the developer. However in order to claim IVA on your expenses you may need to register as self employed "Autonomo".
I know of cases where people have improved a property and later sold it and used our invoices to off-set their tax liability.
Sorry I can't further.
Best regards
David
Nov 2nd 2006, 3:40 pm
#6
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Re: Can a Self-Builder reclaim VAT in Spain
You only pay AEAT (Hacienda) according to what you earn but you do have to pay a minimum of €234,14 per month to INSS for social security. I don't think this is a viable proposition just to claim back a bit of VAT.
Nov 2nd 2006, 3:50 pm
#7
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Re: Can a Self-Builder reclaim VAT in Spain
Hi Beechcomber,
That bit of VAT might add up to €40.000 over the build say 18 mths
Regards,
John.
That bit of VAT might add up to €40.000 over the build say 18 mths
Regards,
John.
Originally Posted by Beachcomber
You only pay AEAT (Hacienda) according to what you earn but you do have to pay a minimum of €234,14 per month to INSS for social security. I don't think this is a viable proposition just to claim back a bit of VAT.
Nov 2nd 2006, 4:45 pm
#8
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Re: Can a Self-Builder reclaim VAT in Spain
The problem is that you presumably would not be issuing any bills yourself for anything. I think they may get a little suspicious!
