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V0253-25 5 March 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión de uso

Rental of housing to a co-housing entity subject to VAT if it charges members

A public commercial entity asks whether the grant of use of a co-housing building to a non-profit entity is exempt from VAT. The DGT responds that the initial rental is subject to the standard 21% VAT rate if the tenant carries out an entrepreneurial activity by charging members for use of the properties.

The question raised

Liability and, where applicable, exemption from Value Added Tax regarding the transfer of use of the real estate to be carried out by the applicant entity.

The DGT's ruling

The leasing of residential property is exempt from VAT when the lessee is the final consumer and intends it for their exclusive use. However, if the lessee is an entrepreneur who grants use to third parties for consideration, the transaction ceases to be exempt. In the case of cohousing, if the lessee entity receives consideration from its members for the use of the rooms, the lease carried out by the applicant shall be subject to VAT and not exempt.

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