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A vehicle rental company in Portugal has enquired whether its Spanish subsidiary can apply for an exemption from the tax on vehicles with foreign registration, and how this would apply to leasing arrangements. The Directorate-General for Taxes (DGT) has ruled that the Spanish company may request the exemption, provided it is the entity using the vehicles for the rental activity and meets all necessary requirements.
This ruling clarifies the eligibility of Spanish subsidiaries for tax exemptions on foreign-registered rental vehicles, potentially reducing tax burdens for cross-border rental operations and leasing models.
The tax team reviews your specific situation.
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