The third installment of the series on business property acquisition, dated 8 October 2026, details the accounting treatment: cost includes purchase price and ancillary charges; land must be separated from buildings as non-depreciable. It covers fiscal deductibility, VAT deduction and adjustment mechanisms, and the special tax credit for investments in Special Economic Zones (ZES).
Key Takeaways
- Cost Allocation: Land and building must be valued separately; only building is depreciable.
- VAT Recovery: Input VAT is deductible pro-rata if the property is used for taxable activities; adjustment rules apply for change of use.
- ZES Credit: Investments in designated ZES areas qualify for a 50% tax credit on eligible costs, subject to EU state aid limits.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement