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V2295-25 ·26 November 2025 ·consulta-vinculante Low impact
Tax

Analysis of VAT liability in the management of residential services through administrative contracts

The DGT confirms that management services for elderly residences are subject to VAT at the reduced rate of 4% due to being service contracts, not concessions.

In 6 key points

How it affects those involved

Service providers managing care homes for the elderly must apply the reduced VAT rate of 4% on their contracts.

Lifecycle

2025-11-26PublishedPublished 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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