Rehabilitation of real estate: what changes with the new VAT regime?

The rehabilitation of real estate continues to play a key role in enhancing heritage and transforming cities. However, recent tax changes have changed the conditions and benefits applicable to this type of projects.

The new mechanism for partial VAT refund, in turn, is intended only for certain construction works of own and permanent housing, and does not cover, in general, rehabilitation works. This means that property recovery projects continue to follow their own tax framework.

Still, this situation does not represent a total loss of benefits for those who want to rehabilitate their property. These interventions can often continue to benefit from the application of the reduced VAT rate, if they comply with the requirements laid down in the legislation. Namely, when they are carried out in areas covered by urban rehabilitation programs or in other legally defined frameworks.

Thus, before moving forward with your project, it is essential to understand which regime applies to your specific circumstance. Carrying out a prior assessment allows you to anticipate costs, plan the investment with greater certainty and avoid incorrect interpretations of the legislation.

At Mulberry Real Estate we have a trained team available to assist you in this step. Whether in the acquisition, valuation or rehabilitation of a property, we monitor each project rigorously, in order to protect the investment and ensure that all opportunities are properly taken advantage of.

Mulberry Real Estate. Vision, rigor and confidence.