VAT impact on real estate transaction can be significant. The sale, leasing and rental of real estate can be either taxable or exempted. In some cases, there is the possibility to opt for taxation.
Due to the high value of the VAT, it is important to find the most suitable structure for a real estate property on a case by case basis (depending on the construction date, future use of the building, exit options envisaged, etc).
Deloitte professionals may perform an analysis of the available alternatives for VAT purposes and carefully plan the transaction in order to minimize the associated VAT costs and/or the cash flow impact.