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A lawyer has requested clarification regarding the taxation of a property lease intended for both residential and partial professional office use. The Directorate General for Taxes (DGT) has ruled that the rent must be subject to 21% VAT and provides guidance on how to deduct expenses for Personal Income Tax (IRPF) purposes.
This ruling clarifies the tax implications for individuals renting properties that serve dual purposes, specifically highlighting the mandatory application of VAT when a portion of the premises is used for professional activities.
The tax team reviews your specific situation.
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