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V0585-17 ·8 March 2017 ·consulta-vinculante Medium impact
Tax

Full VAT deduction permitted for management services related to office and hotel rentals

A real estate investment company has requested clarification regarding the deductibility of VAT on management services. The Directorate General for Taxes (DGT) has ruled that, by applying the special pro rata rule, the company may deduct VAT on management services associated with the rental of offices and hotels, but cannot deduct VAT on services linked to the rental of residential properties.

In 6 key points

How it affects those involved

This ruling clarifies the application of the special pro rata rule for real estate companies, allowing for full VAT recovery on management services specifically tied to commercial and hospitality rentals, while maintaining restrictions on residential-related services.

Lifecycle

2017-03-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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