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V0939-22 ·29 April 2022 ·consulta-vinculante Medium impact
Tax

Leasing of rural land for a beach bar is subject to 21% VAT

A query was raised regarding whether the leasing of rural land for the installation of a beach bar is subject to VAT and whether IRPF (Income Tax) withholding applies. The DGT ruled that the transaction is subject to VAT at the standard rate because the purpose is to install elements for a business activity, and there is no obligation for IRPF withholding as it concerns rural real estate.

In 6 key points

How it affects those involved

This ruling clarifies that commercial use of rural land via leasing triggers standard VAT rates, while confirming that rural property leases do not require income tax withholding.

Lifecycle

2022-04-29PublishedPublished 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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