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V3729-15 ·25 November 2015 ·consulta-vinculante Medium impact
Tax

No obligation to withhold tax on rents if Group 861 activity does not result in a zero tax liability

A company has requested clarification on whether, to qualify for the exemption from withholding tax on urban property rents, the cadastral value of both residential and commercial premises must be taken into account. The Directorate General for Taxes (DGT) has ruled that the activity must be assessed as a whole, and the exemption applies to both types of property provided the resulting tax liability is not zero.

In 6 key points

How it affects those involved

This ruling clarifies the scope of the withholding tax exemption for landlords, confirming that the calculation is based on the aggregate activity rather than individual property types.

Lifecycle

2015-11-25PublishedPublished 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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