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A query was raised regarding whether it is possible to reduce the cadastral value used to calculate the Economic Activities Tax (IAE) when a property is undergoing renovation and only a portion is being rented out. The Directorate-General for Taxes (DGT) ruled that such a reduction is not possible as there is no legal basis for it.
The ruling confirms that taxpayers cannot seek a reduction in the tax base for the IAE based on the temporary partial use of a property undergoing works, maintaining the standard cadastral value for tax assessment purposes.
The tax team reviews your specific situation.
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