VAT Treatment of Immovable Property in Selected OECD Countries
|Country||Building materials||Repair and maintenance||Newly constructed||Existing residential real estate||Other real estate3||Residential real estate||Other real estate3||Kind||Rateb (percent)|
|Austria||S||S||S||L||S||E||E||Property acquisition tax||3.5|
|Denmark||S||S||S||E||E*||E||E*||No, stamp duty|
|Finland||S||Ef||E||E||E||E||E||No, stamp duty|
|Germany||S||S||Eh||E||E*||E||E*||Property acquisition tax||2|
|Ireland||Sj||D||L||E||E*||E||E*||No, Stamp duty||0-6|
|Portugal||S||S||£h, i||E||E*||E||E*||Registration dutym||8-10|
|Sweden||S||S||S||E||r||E||E*||No, Stamp duty|
|United Kingdom||S||S||Zo||En||E*,p||E||E*||No, Stamp duty|
|Selected other OECD countries|
|New Zealand||S||S||S||E||S||E||S||No, Stamp duty|
Key: S = normally liable to the standard rate
L = normally liable to the lower rate
E = normally exempt from tax
Z = normally subject to the zero rate
* = optional registration and taxation are possible if the property is for use in a taxable activity.
In the member States of the EU and Some other OECD countries, hotel accommodation, camping Sites, and parking Space are taxed.
Special rates that may apply are not Shown.
Belgium applies an intermediate rate of 12 percent to public housing, Such as dwellings Supplied to regional housing corporations and apartment buildings for the elderly, the handicapped, the homeless, minors, and Students. Work on Such buildings is also taxed at 12 percent.
In Belgium, renovation, repair, and maintenance Services to dwellings that have been used as Such for at least 20 years are taxed at the lower rate of 6 percent.
Taxed if leased or Sold by a commercial lessor.
Finland taxes installation work relating to water pipes, Sewers, heating, gas pipes, and electric wires.
In France, the Supply of building Sites for Social housing programs is taxed at the lower rate of 5.5 percent; other building SiteS are taxed at 13 percent. Traders in commercial property are Subject to the VAT on gains; no credit is allowed for the tax on purchases, but the tax on repairs is creditable.
In Germany and Portugal, newly constructed property is Subject to the alternative tax.
In Ireland, concrete is taxed at the lower rate of 12.5 percent.
In Ireland, repair and maintenance Services are taxed at the Standard rate if their value is less than one-third of the work contract.
In Italy, the lower-lower rate of 4 percent applies to work on Specified (historical) buildings and the construction of low-cost housing.
l In Portugal, the lower rate of 5 percent applies to public work contracts and to construction work of housing development cooperatives.
In addition, Stamp duty at 0.75 percent is payable on property transfers, while construction work attracts a 0.6 percent Stamp duty.
In Spain, the Standard rate applies to construction work carried out by Someone other than the building contractor.
In the United Kingdom, the Standard rate applies to the Supply of new commercial buildings.
Leases in excess of 21 years granted by the original builder-developer are zero rated.