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V1310-23 ·17 May 2023 ·consulta-vinculante Medium impact
Tax

Leasing residential property to a foundation is VAT exempt if end users are specified in the contract

A foundation sought clarification on whether leasing property for sheltered housing or for mentally ill patients is subject to VAT. The DGT ruled that the exemption depends on whether the contract specifically identifies the natural persons who will occupy the property, thereby preventing the right to sublet or designate users at a later date.

In 6 key points

How it affects those involved

This ruling clarifies the strict requirements for VAT exemption in social housing leases, placing the burden on the contract to identify specific occupants to prevent the loss of exemption through subsequent subletting.

Lifecycle

2023-05-17PublishedPublished 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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