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A taxpayer inquired whether they must register for the Business Activity Tax (IAE) for subletting a premises configured as tourist accommodation. The Directorate General for Taxes (DGT) ruled that while the activity is subject to the IAE, the income obtained is classified as income from movable capital because no hospitality services are provided.
This ruling clarifies the tax distinction between business activity income and movable capital income for property owners who sublet tourist rentals without providing additional services like breakfast or cleaning.
The tax team reviews your specific situation.
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