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A company inquired whether the rental of several properties (flats, storage rooms, and garages) could be classified as an economic activity. The DGT ruled that the legal requirement of having at least one employee under a full-time employment contract is not met.
This ruling clarifies that property rental businesses lacking full-time staff do not qualify as economic activities, potentially affecting their tax treatment and classification as patrimonial entities rather than commercial enterprises.
The tax team reviews your specific situation.
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