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The applicant inquired whether managing hotel leases through a full-time employee constitutes an economic activity and if they qualify for the reduced tax rate for new businesses. The Directorate-General for Taxes (DGT) stated that employing such staff allows the activity to be classified as economic and analysed the application of tax rates under current regulations.
This ruling clarifies the criteria for classifying property management as an economic activity for tax purposes, specifically regarding the requirement for staff, which can influence the applicable tax rates.
The tax team reviews your specific situation.
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