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V1203-20 ·4 May 2020 ·consulta-vinculante Medium impact
Tax

Rental of tourist accommodation without hotel services taxed as income from real estate capital in Personal Income Tax

A property owner rents a tourist apartment to a third party who subsequently sublets it for commercial use. The DGT has ruled that, as no hotel services are provided and no staff are employed, the income is classified as income from real estate capital for Personal Income Tax purposes and is subject to VAT, as it constitutes a lease for subletting.

In 6 key points

How it affects those involved

This ruling clarifies the tax distinction between real estate income and business activity for short-term holiday rentals, specifically when no hospitality services are provided.

Lifecycle

2020-05-04PublishedPublished 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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