
Can I Reclaim VAT on my New-Build Property in Spain?
Buy a new build and recover 100% of the VAT by registering the property for a VAT-eligible rental or business activity for 10 years.
Paul and Tracy East enjoyed renting their friend’s Costa Blanca apartment so much, they ended up buying their own one through HomeEspaña!
The Easts, who live in East Sussex, got the keys to their holiday apartment in Denia in September 2019. Their offer of €135,000 had been accepted in July, when they were having a holiday in the popular Spanish resort.
“The property’s asking price was €145,000,” said Tracy, a florist who has grown-up twin sons. “We think it had been on the market for around a year and the vendor had stopped using it. So we made our offer, which was accepted!”
For the three years prior to buying, the couple had had lots of fun renting a friend’s apartment in Denia. They began looking for their own place during their stay there in 2018, but didn’t find anything that year.
“We’d started by looking inland of Denia,” continued Tracy. “But we realised it would be too quiet for the boys. When we came back in 2019, one of the properties HomeEspaña showed us was our apartment, which we liked immediately. Before making our offer though, we headed south to look in Orihuela Costa, where I fell in love with a townhouse in Punta Prima. It was a toss-up between the two properties. Deep down, I found Punta Prima too English and my son knew this so encouraged me to go for the Dénia option! We went back, viewed it again and made the offer.”
>HomeEspaña were very helpful and especially great at communicating with us. In fact, one of the girls in the team lives next door to us so is on hand to help with anything. She’s already recommended a plumber!”
Tracy and Paul, who works in insurance, have chosen well. Their spacious first-floor apartment has two bedrooms, two bathrooms, one being a large en-suite, a living/dining area with a balcony, a separate kitchen and utility room.
“It’s on a lovely well-maintained complex,” said Tracy. “There must be around 100 apartments there, but they are well spaced out. There is a nice distance between us and the block opposite with palm trees in between, so it doesn’t feel crammed. We have views of Montgó mountain from our balcony and the kitchen window. Communal facilities include a pool, Jacuzzi, and table tennis. We have allocated storage and underground parking.”
The couple were attracted by the apartment’s convenient location too. Denia’s old town, with its great selection of restaurants, bars and shops, is just a 10-minute walk and the nearest beach just 15 minutes away. They also like that the town has a traditional feel and isn’t as seasonal as other resorts, such as Jávea, which is quiet during the cooler months.
“It really does offer an idyllic lifestyle,” continued Tracy. “We can sit on our balcony with glass of wine or we can head into town on foot and never get bored exploring. Our plan is to visit as much as possible – by December 2019 we will have visited five times since buying the apartment. In the new year we’re planning to offer it for holiday lets too.”

Buy a new build and recover 100% of the VAT by registering the property for a VAT-eligible rental or business activity for 10 years.

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