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A group of individuals formed a joint ownership entity to renovate a property intended for their own holiday use. The DGT ruled that the entity is the developer, determined the applicable VAT rate, and clarified that expenses are not deductible for Personal Income Tax (IRPF) purposes.
This ruling clarifies the tax status of joint ownership entities in renovation projects, specifically regarding their role as developers and the application of reduced VAT rates, while confirming the non-deductibility of costs for individual tax purposes.
The tax team reviews your specific situation.
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