
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.
At least that was what Derek and Michaela told their two teenage children when they left their home in the city of Bonn, Germany by car at the end of March this year on a two-day trip to Spain to complete the purchase of their villa in Pego, Alicante through HomeEspaña.
“Since we wanted to take a lot of things with us to the new house, we travelled by car and trailer, disguised as a road trip for the children,” said Derek.
The family did however take advantage of the journey to stop off in Marseille and Barcelona and do some sightseeing on their way.
Derek, a civil servant, and his wife Michaela, a tax consultant, got in touch with HomeEspaña prior to their visit to Spain to view properties in November, 2022.
“Jessica Matzon had received our house requests by email for weeks beforehand and with incredible patience she went through all the houses with us by phone/WhatsApp/email. Since Jessica knew exactly what we wanted in terms of properties, she was able to present us with exactly the right properties,” Derek said.
When asked why he and his wife wanted to buy a house in Spain for his family, Derek responded “who wouldn’t want a villa in Spain to escape the hustle and bustle and recharge your batteries?”
The family ended up buying a spectacular villa with a total of six bedrooms and three bathrooms, split into two separate and fully independent three-bedroom accommodations, with a private swimming pool and breath-taking views of the mountains, valley and the Mediterranean Sea.
“I loved everything about the property, otherwise I wouldn’t have bought it,” he joked, “but mainly the view, the pool, the layout of the villa itself and the location.”
“We paid the reservation fee late in the evening with Jessica after a visit to the HomeEspana Office,” Derek said. “We felt very well looked after by our estate agent. All the services you need, starting with the notary, lawyer, insurance, security, internet, electricity, water, contact with the urbanisation, the neighbours… Jessica always actively supported us in everything. Even questions at the most impossible times were always dealt with promptly,” he said.
Derek and Michaela completed their purchase on 31st March 2023 and can now look forward to taking advantage of all the school holidays in Germany to come to Spain and enjoy their new house… and who knows, maybe they will consider making a permanent move when their children are older!
Pego is a traditional Spanish town with medical centres, schools, shops and restaurants and is located just a 15-minute drive from the nearest beach, Platja de Les Deveses, Oliva Nova Golf Resort and just an hour from either Valencia or Alicante International Airports.

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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Owning a home is a keystone of wealth… both financial affluence and emotional security.
Suze Orman