How do I reclaim VAT back on my ski property?
Are there tax advantages to renting?Renting your new-build property in Austria can have tax advantages. It is possible to reclaim part, or all of the VAT on your purchase giving a discount of up to 20%. Eligibility to reclaim VAT back on your ski property purchase requires you to rent your property professionally when you are not using it. You will also need to show an overall profit over a period of 20 years. You can reclaim all the VAT (the full 20%) if you rent your property commercially and do not use it yourself. If you declare in advance that you will be using the property partly for your private use then the amount of VAT you can reclaim depends on the ratio of personal use to rental use.
To reclaim the tax you will need to register for VAT, pay the gross property price, and then claim the tax back. This usually takes two to three months and you will be appointed a tax advisor to help you with this. It is possible to obtain a bridging-loan for this if required. However, in some cases, this is not necessary as the developers will have pre-arranged everything for you. So, in this case, you will only need to pay the net price.
If you would like further information on this subject please contact our Ski Property Experts on: +44(0)20 7486 9419 Alternatively, feel free to email us at firstname.lastname@example.org and we will send you our specific Tax-Back Guide.